Kensico Capital Management Corp Acquires 66,400 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Kensico Capital Management Corp increased its stake in Cadence Design Systems by 64.2%, acquiring a total of 169,800 shares, making it one of their top holdings.
• Major research firms have altered their ratings on Cadence Design Systems, with Mizuho and Needham & Company upgrading their target prices significantly, indicating strong confidence in the company.
• Cadence Design Systems reported earnings of $1.65 per share for the last quarter, exceeding expectations and marking a 20.2% year-over-year revenue increase to $1.28 billion.

Kensico Capital Management Corp increased its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 64.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 169,800 shares of the software maker's stock after purchasing an additional 66,400 shares during the period. Cadence Design Systems makes up 1.0% of Kensico Capital Management Corp's portfolio, making the stock its 19th biggest position. Kensico Capital Management Corp owned approximately 0.06% of Cadence Design Systems worth $43,185,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake 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 acquiring an additional 429,955 shares in the last quarter. Jennison Associates LLC lifted its stake 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 acquiring an additional 1,054,702 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Cadence Design Systems by 10.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,416,269 shares of the software maker's stock valued at $1,326,912,000 after acquiring an additional 427,418 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Cadence Design Systems by 12.7% in the 4th quarter. Janus Henderson Group PLC now owns 2,530,293 shares of the software maker's stock valued at $760,314,000 after acquiring an additional 285,617 shares in the last quarter. Finally, Invesco Ltd. lifted its stake 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 acquiring an additional 296,983 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Rosenblatt Securities reaffirmed a "neutral" rating and set a $300.00 price target on shares of Cadence Design Systems in a research report on Friday, July 25th. KeyCorp upped their target price on Cadence Design Systems from $358.00 to $405.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Loop Capital increased their target price on Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Piper Sandler reissued a "neutral" rating and issued a $355.00 price target (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. Finally, Berenberg Bank set a $400.00 target price on Cadence Design Systems in a research note on Wednesday, July 30th. Twelve research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $364.33.

Insider Buying and Selling at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction that occurred on 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 directly owned 102,499 shares of the company's stock, valued at approximately $35,254,531.05. This represents a 0.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders sold 4,000 shares of company stock valued at $1,311,020. Corporate insiders own 1.99% of the company's stock.

Cadence Design Systems Stock Up 0.3%

Shares of CDNS stock traded up $1.13 during midday trading on Tuesday, reaching $361.77. 1,247,052 shares of the stock were exchanged, compared to its average volume of 1,985,254. Cadence Design Systems, Inc. has a 1 year low of $221.56 and a 1 year high of $376.45. The company's 50 day moving average is $340.32 and its two-hundred day moving average is $300.27. The company has a current ratio of 2.82, a quick ratio of 2.67 and a debt-to-equity ratio of 0.49. The firm has a market cap of $98.58 billion, a PE ratio of 97.78, a price-to-earnings-growth ratio of 4.60 and a beta of 1.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.09. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The firm's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the business 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 predict that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

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.