Applied Finance Capital Management LLC Acquires New Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Applied Finance Capital Management LLC has acquired a new stake in Cadence Design Systems, Inc., purchasing 3,275 shares valued at approximately $1,009,000 during the 2nd quarter of 2023.
• Several other institutional investors have also recently increased or decreased their stakes in Cadence, with institutional ownership now exceeding 84%.
• Cadence Design Systems reported better-than-expected earnings of $1.65 per share for the last quarter, surpassing consensus estimates and indicating a 20.2% year-over-year revenue growth.

Applied Finance Capital Management LLC acquired a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 3,275 shares of the software maker's stock, valued at approximately $1,009,000.

Other large investors also recently added to or reduced their stakes in the company. Smallwood Wealth Investment Management LLC bought a new stake in Cadence Design Systems during the first quarter valued at $25,000. Costello Asset Management INC bought a new stake in Cadence Design Systems during the first quarter valued at $25,000. Barrett & Company Inc. bought a new stake in Cadence Design Systems during the second quarter valued at $31,000. Saudi Central Bank bought a new stake in Cadence Design Systems during the first quarter valued at $27,000. Finally, Valley National Advisers Inc. boosted its stake in Cadence Design Systems by 707.1% during the first 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 during the period. Institutional investors own 84.85% of the company's stock.

Insider Transactions at Cadence Design Systems

In related news, Director Ita M. Brennan sold 180 shares of the business'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 transaction, the director owned 7,830 shares in the company, valued at $2,619,213.30. The trade was a 2.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO John M. Wall sold 7,500 shares of the business's stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $349.16, for a total value of $2,618,700.00. Following the transaction, the chief financial officer owned 70,715 shares in the company, valued at approximately $24,690,849.40. This represents a 9.59% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 10,680 shares of company stock worth $3,729,852. Company insiders own 1.99% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on CDNS shares. Rosenblatt Securities reaffirmed a "neutral" rating and set a $300.00 price target on shares of Cadence Design Systems in a research note on Friday, July 25th. Robert W. Baird lifted their price target on Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Piper Sandler reaffirmed a "neutral" rating and set a $355.00 price target (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. Berenberg Bank set a $400.00 price target on Cadence Design Systems in a research note on Wednesday, July 30th. Finally, Loop Capital lifted their price target on Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Thirteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $368.53.

Cadence Design Systems Stock Up 0.6%

Shares of NASDAQ CDNS opened at $326.12 on Friday. 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, Inc. has a 52 week low of $221.56 and a 52 week high of $376.45. The firm's fifty day moving average is $348.49 and its 200 day moving average is $318.88. The company has a market cap of $88.86 billion, a price-to-earnings ratio of 88.14, a PEG ratio of 4.25 and a beta of 0.99.

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

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