Advisors Capital Management LLC Takes Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Advisors Capital Management LLC has initiated a new position in Cadence Design Systems, purchasing 861 shares valued at around $219,000 during the first quarter of 2023.
• Shares of Cadence Design Systems have seen a 3.2% decline, trading at approximately $343.48, with a significant market cap of $93.59 billion and a PE ratio of 92.83.
• Brokerages are showing a positive outlook, with multiple firms upgrading Cadence's rating to "buy" and setting price targets ranging from $360 to $400.

Advisors Capital Management LLC bought a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 861 shares of the software maker's stock, valued at approximately $219,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in CDNS. Smallwood Wealth Investment Management LLC purchased a new position in shares of Cadence Design Systems during the 1st quarter valued at approximately $25,000. Costello Asset Management INC purchased a new position in shares of Cadence Design Systems during the 1st quarter valued at approximately $25,000. Saudi Central Bank purchased a new position in shares of Cadence Design Systems during the 1st quarter valued at approximately $27,000. Valley National Advisers Inc. lifted its position in shares of Cadence Design Systems by 707.1% during the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after buying an additional 99 shares in the last quarter. Finally, Meeder Asset Management Inc. lifted its position in shares of Cadence Design Systems by 36.5% during the 1st quarter. Meeder Asset Management Inc. now owns 172 shares of the software maker's stock valued at $44,000 after buying an additional 46 shares in the last quarter. Hedge funds and other institutional investors own 84.85% of the company's stock.

Cadence Design Systems Stock Down 3.2%

Shares of CDNS opened at $343.48 on Friday. Cadence Design Systems, Inc. has a 52-week low of $221.56 and a 52-week high of $376.45. The company has a market capitalization of $93.59 billion, a PE ratio of 92.83, a price-to-earnings-growth ratio of 4.65 and a beta of 1.00. The stock has a fifty day simple moving average of $342.75 and a two-hundred day simple moving average of $302.64. The company has a quick ratio of 2.67, a current ratio of 2.82 and a debt-to-equity ratio of 0.49.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $1.25 billion. During the same period last year, the company earned $1.28 EPS. The company's revenue for the quarter was up 20.2% on a year-over-year basis. 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 forecast that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CDNS. Wall Street Zen upgraded Cadence Design Systems from a "hold" rating to a "buy" rating in a research report on Saturday. Mizuho raised their price objective on Cadence Design Systems from $360.00 to $375.00 and gave the company an "outperform" rating in a report on Tuesday, July 29th. Berenberg Bank set a $400.00 price objective on Cadence Design Systems in a report on Wednesday, July 30th. Loop Capital raised their price objective on Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Finally, Stifel Nicolaus raised their price objective on Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Cadence Design Systems has an average rating of "Moderate Buy" and an average target price of $364.33.

Insider Transactions at Cadence Design Systems

In related news, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $334.51, for a total transaction of $60,211.80. Following the completion of the sale, the director directly owned 7,830 shares of the company's stock, valued at approximately $2,619,213.30. This trade represents a 2.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $343.95, for a total value of $343,950.00. Following the sale, the vice president directly owned 102,499 shares of the company's stock, valued at $35,254,531.05. The trade was a 0.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 3,180 shares of company stock valued at $1,069,232 over the last three months. Corporate insiders own 1.99% of the company's stock.

About Cadence Design Systems

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.

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