Cadence Design Systems, Inc. $CDNS Stake Increased by Bridges Investment Management Inc.

Key Points

• Bridges Investment Management Inc. increased its stake in Cadence Design Systems by 32.6% in Q2, owning 174,072 shares worth approximately $53.64 million.
• Cadence Design Systems reported $1.65 earnings per share for the last quarter, exceeding estimates, with revenue reaching $1.28 billion, a 20.2% increase year-over-year.
• Several analysts set new price targets for Cadence, with an average target of $368.53, reflecting a consensus rating of "Moderate Buy."

Bridges Investment Management Inc. increased its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 32.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 174,072 shares of the software maker's stock after buying an additional 42,812 shares during the period. Bridges Investment Management Inc. owned about 0.06% of Cadence Design Systems worth $53,640,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in CDNS. Vanguard Group Inc. boosted its holdings in Cadence Design Systems by 1.7% in the first quarter. Vanguard Group Inc. now owns 26,339,142 shares of the software maker's stock worth $6,698,834,000 after purchasing an additional 429,955 shares during the period. Jennison Associates LLC boosted its holdings in Cadence Design Systems by 13.2% in the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock worth $2,305,489,000 after purchasing an additional 1,054,702 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Cadence Design Systems by 7.1% in the first 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 worth $1,202,733,000 after purchasing an additional 312,757 shares during the period. Invesco Ltd. boosted its holdings in Cadence Design Systems by 14.0% in the first quarter. Invesco Ltd. now owns 2,416,284 shares of the software maker's stock worth $614,534,000 after purchasing an additional 296,983 shares during the period. Finally, Principal Financial Group Inc. boosted its holdings in Cadence Design Systems by 0.4% in the first quarter. Principal Financial Group Inc. now owns 2,245,930 shares of the software maker's stock worth $571,208,000 after purchasing an additional 8,361 shares during the period. Institutional investors own 84.85% of the company's stock.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $348.27, for a total value of $348,270.00. Following the completion of the transaction, the vice president owned 99,672 shares in the company, valued at $34,712,767.44. This represents a 0.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $334.51, for a total transaction of $60,211.80. Following the completion of the transaction, the director owned 7,830 shares of the company's stock, valued at $2,619,213.30. This represents a 2.25% decrease in their position. The disclosure for this sale can be found here. Insiders sold 10,680 shares of company stock worth $3,729,852 in the last 90 days. Corporate insiders own 1.99% of the company's stock.

Cadence Design Systems Stock Performance

Shares of CDNS opened at $324.10 on Thursday. Cadence Design Systems, Inc. has a 1 year low of $221.56 and a 1 year high of $376.45. The company has a market cap of $88.31 billion, a price-to-earnings ratio of 87.59, a price-to-earnings-growth ratio of 4.27 and a beta of 0.99. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. The firm has a fifty day moving average of $349.61 and a 200-day moving average of $317.93.

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 (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.09. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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. As a group, equities analysts anticipate that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Analysts Set New Price Targets

A number of research firms have commented on CDNS. BNP Paribas Exane began coverage on shares of Cadence Design Systems in a report on Thursday, October 2nd. They issued an "outperform" rating and a $400.00 price objective for the company. Rosenblatt Securities reaffirmed a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a report on Friday, July 25th. Needham & Company LLC lifted 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. Stifel Nicolaus lifted their price objective on shares of Cadence Design Systems from $350.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Finally, Robert W. Baird boosted their price target on shares of Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and an average target price of $368.53.

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.

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