Cadence Design Systems, Inc. $CDNS Shares Acquired by Covea Finance

Key Points

• Covea Finance has increased its stake in Cadence Design Systems by 9.4%, owning 56,061 shares valued at $17.3 million after acquiring an additional 4,800 shares in the second quarter.
• Numerous institutional investors, including Vanguard Group and Jennison Associates, have also raised their holdings in Cadence, showcasing strong institutional interest with over 84% of shares owned by institutional investors.
• Analysts have recently raised price targets for Cadence Design Systems, with a consensus rating of "Moderate Buy" and an average target price of $364.33, indicating positive market sentiment towards the company.

Covea Finance lifted its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 9.4% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 56,061 shares of the software maker's stock after purchasing an additional 4,800 shares during the quarter. Covea Finance's holdings in Cadence Design Systems were worth $17,275,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in Cadence Design Systems by 1.7% in the 1st quarter. Vanguard Group Inc. now owns 26,339,142 shares of the software maker's stock valued at $6,698,834,000 after purchasing an additional 429,955 shares in the last quarter. Jennison Associates LLC lifted its holdings in 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 purchasing an additional 1,054,702 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Cadence Design Systems by 7.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,729,026 shares of the software maker's stock valued at $1,202,733,000 after purchasing an additional 312,757 shares in the last quarter. Invesco Ltd. lifted its holdings in Cadence Design Systems by 14.0% in the 1st quarter. Invesco Ltd. now owns 2,416,284 shares of the software maker's stock valued at $614,534,000 after purchasing an additional 296,983 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in Cadence Design Systems by 0.4% in the 1st quarter. Principal Financial Group Inc. now owns 2,245,930 shares of the software maker's stock valued at $571,208,000 after purchasing an additional 8,361 shares in the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on CDNS. Needham & Company LLC increased their price objective on shares of Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Loop Capital increased their price objective on shares of Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Robert W. Baird increased their target price on shares of Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Rosenblatt Securities reissued a "neutral" rating and set a $300.00 target price on shares of Cadence Design Systems in a research report on Friday, July 25th. Finally, 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 report on Tuesday, July 29th. Twelve equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $364.33.

Cadence Design Systems Price Performance

Shares of CDNS opened at $373.37 on Tuesday. The stock's fifty day moving average is $347.39 and its 200-day moving average is $307.88. The firm has a market capitalization of $101.74 billion, a price-to-earnings ratio of 100.91, a price-to-earnings-growth ratio of 4.90 and a beta of 1.00. Cadence Design Systems, Inc. has a one year low of $221.56 and a one year high of $376.45. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released 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. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.Cadence Design Systems's revenue was up 20.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.28 earnings per share. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. Equities analysts anticipate that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems 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 transaction, the vice president owned 102,499 shares of the company's stock, valued at approximately $35,254,531.05. This trade represents a 0.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 value of $60,211.80. Following the sale, the director owned 7,830 shares of the company's stock, valued at $2,619,213.30. The trade was a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,180 shares of company stock worth $1,069,232 in the last three months. 0.37% of the stock is currently owned by company insiders.

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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