Cadence Design Systems, Inc. $CDNS Position Increased by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management increased its Cadence Design Systems position by 10.3% in the third quarter, adding 6,877 shares and bringing its holdings to 73,347 shares, worth about $23.8 million.
• Cadence beat quarterly expectations, reporting adjusted EPS of $2.11 versus $2.05 expected and revenue of $1.63 billion, up 22% year over year.
• Analysts give the stock a Moderate Buy consensus rating, with an average price target of $410.05; one Strong Buy, 18 Buy, and three Hold ratings were reported.

Rakuten Investment Management Inc. grew its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 10.3% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 73,347 shares of the software maker's stock after buying an additional 6,877 shares during the period. Rakuten Investment Management Inc.'s holdings in Cadence Design Systems were worth $23,777,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of CDNS. Whipplewood Advisors LLC increased its stake in Cadence Design Systems by 933.3% during the first quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker's stock valued at $26,000 after purchasing an additional 84 shares during the last quarter. Avalon Trust Co acquired a new position in shares of Cadence Design Systems in the 2nd quarter valued at about $30,000. Burkett Financial Services LLC bought a new stake in shares of Cadence Design Systems during the 3rd quarter valued at about $30,000. Fiduciary Financial Advisors bought a new stake in shares of Cadence Design Systems during the 2nd quarter valued at about $31,000. Finally, Balance Wealth Partners LLC bought a new stake in shares of Cadence Design Systems during the 3rd quarter valued at about $32,000. Institutional investors own 84.85% of the company's stock.

Insider Activity

In other Cadence Design Systems news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the company's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $350.07, for a total value of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares in the company, valued at approximately $13,843,168.08. This represents a 3.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total transaction of $51,391.80. Following the completion of the sale, the director owned 7,824 shares in the company, valued at $2,233,830.24. The trade was a 2.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 8,960 shares of company stock valued at $2,834,139. Company insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

CDNS has been the topic of several research reports. Wall Street Zen upgraded shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a research note on Wednesday, October 28th. Bank of America lifted their target price on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. FBN Securities started coverage on Cadence Design Systems in a report on Friday, September 11th. They set an "outperform" rating and a $375.00 target price for the company. Rothschild & Co Redburn upped their target price on Cadence Design Systems from $385.00 to $395.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Finally, Oppenheimer reiterated a "market perform" rating and set a $300.00 price target (up from $275.00) on shares of Cadence Design Systems in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $410.05.

Cadence Design Systems Stock Performance

CDNS stock opened at $323.75 on Wednesday. Cadence Design Systems, Inc. has a 1 year low of $262.75 and a 1 year high of $416.69. The stock has a market capitalization of $88.83 billion, a price-to-earnings ratio of 64.36, a PEG ratio of 3.12 and a beta of 1.10. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.18 and a current ratio of 1.36. The stock's fifty day moving average is $320.90 and its two-hundred day moving average is $327.36.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings results on Monday, October 26th. The software maker reported $2.11 EPS for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 22.51% and a return on equity of 26.56%. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same quarter in the prior year, the firm earned $1.93 earnings per share. The company's quarterly revenue was up 22.0% on a year-over-year basis. On average, research analysts predict that Cadence Design Systems, Inc. will post 6.71 EPS for the current year.

Cadence Design Systems Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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