Carderock Capital Management Inc. Has $8.41 Million Stock Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Carderock Capital Management Inc. reduced its stake in Cadence Design Systems by 4.6%, now holding 27,301 shares worth approximately $8.41 million.
• Cadence Design Systems recently posted quarterly earnings of $1.65 per share, exceeding analysts' expectations of $1.56, with a revenue of $1.28 billion.
• Analysts have raised their price targets for Cadence Design Systems, with estimates now ranging from $375 to $405, while the stock is rated as a "Moderate Buy" by most investment analysts.

Carderock Capital Management Inc. lowered its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 4.6% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 27,301 shares of the software maker's stock after selling 1,327 shares during the period. Cadence Design Systems makes up approximately 2.2% of Carderock Capital Management Inc.'s portfolio, making the stock its 22nd biggest holding. Carderock Capital Management Inc.'s holdings in Cadence Design Systems were worth $8,413,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. GAMMA Investing LLC grew its holdings in Cadence Design Systems by 31,049.1% during the first quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker's stock worth $309,835,000 after acquiring an additional 1,214,330 shares during the period. Nuveen LLC acquired a new position in Cadence Design Systems in the first quarter valued at $289,744,000. Jennison Associates LLC increased its stake 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 valued at $2,305,489,000 after purchasing an additional 1,054,702 shares during the last quarter. Vanguard Group Inc. increased its stake 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 valued at $6,698,834,000 after purchasing an additional 429,955 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake 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 valued at $1,202,733,000 after purchasing an additional 312,757 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $343.95, for a total transaction of $343,950.00. Following the transaction, the vice president directly owned 102,499 shares in the company, valued at $35,254,531.05. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $334.51, for a total value of $60,211.80. Following the transaction, the director owned 7,830 shares in the company, valued at $2,619,213.30. This represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 3,180 shares of company stock worth $1,069,232 over the last quarter. 0.37% of the stock is currently owned by corporate insiders.

Cadence Design Systems Stock Down 1.6%

NASDAQ CDNS traded down $6.02 during trading on Tuesday, hitting $367.35. 340,273 shares of the company traded hands, compared to its average volume of 2,009,770. Cadence Design Systems, Inc. has a 12 month low of $221.56 and a 12 month high of $376.45. The business has a fifty day simple moving average of $347.39 and a 200 day simple moving average of $307.88. 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 company has a market capitalization of $100.10 billion, a P/E ratio of 99.50, a PEG ratio of 4.90 and a beta of 1.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.09. The company 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%.The business's revenue was up 20.2% compared to the same quarter last year. During the same period last 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. As a group, sell-side analysts predict that Cadence Design Systems, Inc. will post 5.41 EPS for the current year.

Analyst Upgrades and Downgrades

CDNS has been the subject of several research analyst reports. KeyCorp upped their price target on Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Rosenblatt Securities reissued a "neutral" rating and issued a $300.00 price target on shares of Cadence Design Systems in a report on Friday, July 25th. Needham & Company LLC increased their price target on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Robert W. Baird increased their price target on Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, 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 report on Tuesday, July 29th. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $364.33.

Cadence Design Systems Company 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.