Baillie Gifford & Co. Buys New Shares in Cadence Design Systems, Inc. (NASDAQ:CDNS)

Key Points

• Baillie Gifford & Co. purchased 42,817 shares of Cadence Design Systems, valued at approximately $10.89 million, marking a significant new position in the company during the first quarter.
• Cadence Design Systems reported a strong quarterly performance with an EPS of $1.57, surpassing analyst expectations and reflecting a 23.1% year-over-year revenue increase.
• Analyst ratings for Cadence Design Systems vary, with twelve analysts recommending a buy and recent price targets set between $325 and $370 from major brokerages.

Baillie Gifford & Co. purchased a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 42,817 shares of the software maker's stock, valued at approximately $10,890,000.

Several other institutional investors have also recently bought and sold shares of the business. Park Square Financial Group LLC acquired a new position in Cadence Design Systems during the fourth quarter valued at approximately $348,000. Merit Financial Group LLC increased its stake in Cadence Design Systems by 42.6% during the 1st quarter. Merit Financial Group LLC now owns 3,165 shares of the software maker's stock worth $805,000 after acquiring an additional 946 shares during the period. Novem Group increased its stake in Cadence Design Systems by 30.3% during the 1st quarter. Novem Group now owns 4,067 shares of the software maker's stock worth $1,034,000 after acquiring an additional 945 shares during the period. Seilern Investment Management Ltd bought a new position in shares of Cadence Design Systems in the 1st quarter valued at $64,800,000. Finally, Integrated Advisors Network LLC increased its stake in shares of Cadence Design Systems by 156.9% in the 4th quarter. Integrated Advisors Network LLC now owns 3,406 shares of the software maker's stock valued at $1,023,000 after purchasing an additional 2,080 shares during the last quarter. Institutional investors own 84.85% of the company's stock.

Analyst Upgrades and Downgrades

CDNS has been the topic of several recent research reports. Piper Sandler reissued a "neutral" rating and set a $355.00 price objective (up previously from $328.00) on shares of Cadence Design Systems in a report on Tuesday. JPMorgan Chase & Co. raised their price objective on Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a report on Tuesday. Needham & Company LLC raised their price objective on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Finally, Loop Capital lifted their target price on Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have assigned a buy rating to the stock. According to MarketBeat.com, Cadence Design Systems has a consensus rating of "Moderate Buy" and a consensus target price of $359.00.

Insider Buying and Selling

In related news, CEO Anirudh Devgan sold 10,737 shares of the firm's stock in a transaction that occurred on Friday, May 2nd. The stock was sold at an average price of $310.00, for a total transaction of $3,328,470.00. Following the transaction, the chief executive officer directly owned 209,548 shares in the company, valued at $64,959,880. This trade represents a 4.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the completion of the transaction, the director owned 8,010 shares of the company's stock, valued at approximately $2,435,040. The trade was a 2.20% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 15,085 shares of company stock valued at $4,652,087. 0.37% of the stock is owned by company insiders.

Cadence Design Systems Stock Performance

CDNS stock traded up $4.74 during midday trading on Wednesday, hitting $371.00. The company's stock had a trading volume of 1,306,093 shares, compared to its average volume of 2,072,646. The stock's 50-day moving average price is $310.57 and its 200 day moving average price is $289.31. The company has a quick ratio of 2.90, a current ratio of 3.07 and a debt-to-equity ratio of 0.52. Cadence Design Systems, Inc. has a 1 year low of $221.56 and a 1 year high of $373.27. The stock has a market cap of $101.30 billion, a price-to-earnings ratio of 100.12, a PEG ratio of 4.64 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, beating analysts' consensus estimates of $1.56 by $0.09. Cadence Design Systems had a return on equity of 30.18% and a net margin of 19.88%. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.25 billion. During the same quarter in the prior year, the firm earned $1.28 EPS. The business's revenue for the quarter was up 20.2% compared to the same quarter last year. On average, equities analysts forecast 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.