Cadence Design Systems, Inc. $CDNS Stock: Pictet Asset Management Holding SA Grows Position

Key Points

• Pictet Asset Management increased its Cadence Design Systems stake by 118.5% in the third quarter, adding about 1.49 million shares. It held 2.75 million shares, valued at roughly $909 million, and other institutional investors also reported increasing positions.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $410.05; several firms set targets as high as $420, while Wall Street Zen downgraded the stock to “Hold.”
• Cadence reported quarterly EPS of $2.11, topping the $2.05 estimate, and revenue of $1.63 billion, up 22% year over year. Insiders sold 8,960 shares over the past three months, primarily through pre-arranged trading plans.

Pictet Asset Management Holding SA raised its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 118.5% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,752,620 shares of the software maker's stock after buying an additional 1,493,024 shares during the period. Cadence Design Systems comprises about 0.9% of Pictet Asset Management Holding SA's investment portfolio, making the stock its 19th biggest holding. Pictet Asset Management Holding SA owned 1.00% of Cadence Design Systems worth $908,709,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also modified their holdings of CDNS. Leelyn Smith LLC lifted its holdings in shares of Cadence Design Systems by 10.8% during the 3rd quarter. Leelyn Smith LLC now owns 6,160 shares of the software maker's stock valued at $2,034,000 after buying an additional 600 shares during the last quarter. Guidance Capital Inc. increased its holdings in Cadence Design Systems by 2.2% in the third quarter. Guidance Capital Inc. now owns 4,068 shares of the software maker's stock worth $1,340,000 after buying an additional 86 shares during the last quarter. Tamar Securities LLC increased its holdings in Cadence Design Systems by 12.5% in the third quarter. Tamar Securities LLC now owns 66,595 shares of the software maker's stock worth $21,989,000 after buying an additional 7,379 shares during the last quarter. Alps Advisors Inc. increased its holdings in Cadence Design Systems by 19.1% in the third quarter. Alps Advisors Inc. now owns 5,343 shares of the software maker's stock worth $1,764,000 after buying an additional 856 shares during the last quarter. Finally, International Assets Investment Management LLC raised its position in Cadence Design Systems by 10.2% during the third quarter. International Assets Investment Management LLC now owns 864 shares of the software maker's stock valued at $303,000 after acquiring an additional 80 shares in the last quarter. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CDNS has been the topic of several analyst reports. Wall Street Zen lowered shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Thursday. Oppenheimer reiterated a "market perform" rating and issued a $300.00 price objective (up from $275.00) on shares of Cadence Design Systems in a report on Tuesday, July 28th. Rosenblatt Securities reissued a "buy" rating and set a $420.00 target price on shares of Cadence Design Systems in a research report on Friday, October 23rd. Rothschild & Co Redburn raised 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, Citigroup raised their target price on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average price target of $410.05.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Scannell sold 280 shares of the firm's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the transaction, the vice president directly owned 31,720 shares of the company's stock, valued at $10,753,080. This trade represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of Cadence Design Systems stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the sale, the director owned 39,544 shares in the company, valued at $13,843,168.08. This represents a 3.06% 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 three months, insiders have sold 8,960 shares of company stock valued at $2,834,139. Company insiders own 0.49% of the company's stock.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $319.92 on Friday. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week high of $416.69. The firm has a market capitalization of $87.78 billion, a price-to-earnings ratio of 63.60, a P/E/G ratio of 3.03 and a beta of 1.10. The company's fifty day moving average is $319.83 and its two-hundred day moving average is $327.44. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.36 and a quick ratio of 1.18.

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

About Cadence Design Systems

Cadence Design Systems, Inc develops software, hardware and intellectual property used to design and verify semiconductors and electronic systems. Its electronic design automation (EDA) tools help customers plan, build, test and analyze complex chips and circuit boards.

The company also offers semiconductor intellectual property and hardware platforms for design prototyping and verification, as well as software for system analysis, including computational fluid dynamics and electromagnetic simulation.

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