T. Rowe Price Investment Management Inc. Invests $11.58 Million in Cadence Design Systems, Inc. $CDNS

Key Points

• T. Rowe Price Investment Management Inc. has acquired 45,521 shares of Cadence Design Systems, Inc., valued at approximately $11.58 million, during the first quarter.
• Cadence Design Systems reported a 20.2% year-over-year revenue increase, with quarterly earnings exceeding estimates at $1.65 EPS against a consensus of $1.56 EPS.
• The stock currently holds a consensus rating of "Moderate Buy" among analysts, with average price targets ranging from $300 to $390.

T. Rowe Price Investment Management Inc. acquired a new position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 45,521 shares of the software maker's stock, valued at approximately $11,578,000.

Several other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Cadence Design Systems by 1.7% in the first quarter. Vanguard Group Inc. now owns 26,339,142 shares of the software maker's stock worth $6,698,834,000 after purchasing an additional 429,955 shares in the last quarter. Jennison Associates LLC raised its position in shares of Cadence Design Systems by 13.2% in the 1st quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock valued at $2,305,489,000 after acquiring an additional 1,054,702 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Cadence Design Systems by 10.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,416,269 shares of the software maker's stock worth $1,326,912,000 after purchasing an additional 427,418 shares in the last quarter. Northern Trust Corp grew its stake in shares of Cadence Design Systems by 16.1% during the 4th quarter. Northern Trust Corp now owns 3,032,957 shares of the software maker's stock worth $911,282,000 after acquiring an additional 421,507 shares in the last quarter. Finally, Janus Henderson Group PLC grew its position in Cadence Design Systems by 12.7% in the fourth quarter. Janus Henderson Group PLC now owns 2,530,293 shares of the software maker's stock valued at $760,314,000 after purchasing an additional 285,617 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Insider Activity

In related news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $358.72, for a total transaction of $358,720.00. Following the transaction, the vice president directly owned 104,499 shares of the company's stock, valued at $37,485,881.28. This represents a 0.95% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the transaction, the director directly owned 8,010 shares in the company, valued at $2,435,040. This represents a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 3,830 shares of company stock worth $1,207,671 over the last ninety days. 1.99% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

CDNS has been the subject of a number of research reports. KeyCorp lifted their target price on Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Piper Sandler reissued a "neutral" rating and set a $355.00 target price (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. Robert W. Baird upped their price objective on Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. JPMorgan Chase & Co. upped their price objective on Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Finally, Needham & Company LLC upped their target price on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Twelve investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $364.33.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS traded down $6.68 during trading on Friday, hitting $347.61. 445,416 shares of the company's stock were exchanged, compared to its average volume of 2,007,447. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.82 and a quick ratio of 2.67. Cadence Design Systems, Inc. has a 52-week low of $221.56 and a 52-week high of $376.45. The business's 50-day simple moving average is $333.29 and its 200 day simple moving average is $297.06. The company has a market cap of $94.72 billion, a price-to-earnings ratio of 94.01, a PEG ratio of 4.55 and a beta of 0.97.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. During the same quarter in the previous year, the business earned $1.28 earnings per share. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. As a group, equities analysts predict that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Cadence Design Systems Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.