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. lessened its holdings in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 4.6% during the second quarter, according to the company in its most recent filing 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 comprises approximately 2.2% of Carderock Capital Management Inc.'s holdings, making the stock its 22nd biggest holding. Carderock Capital Management Inc.'s holdings in Cadence Design Systems were worth $8,413,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Cadence Design Systems by 1.7% during the 1st quarter. Vanguard Group Inc. now owns 26,339,142 shares of the software maker's stock worth $6,698,834,000 after buying an additional 429,955 shares during the period. Jennison Associates LLC increased its stake in Cadence Design Systems by 13.2% during the 1st quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock worth $2,305,489,000 after buying an additional 1,054,702 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Cadence Design Systems by 7.1% during 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 worth $1,202,733,000 after buying an additional 312,757 shares during the period. Invesco Ltd. increased its position in shares of Cadence Design Systems by 14.0% in the 1st 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 last quarter. Finally, Principal Financial Group Inc. increased its position in shares of 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 worth $571,208,000 after purchasing an additional 8,361 shares during the last quarter. Hedge funds and other institutional investors own 84.85% of the company's stock.

Analysts Set New Price Targets

CDNS has been the topic of several research reports. JPMorgan Chase & Co. increased their price objective on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Rosenblatt Securities reissued a "neutral" rating and set a $300.00 target price on shares of Cadence Design Systems in a research note on Friday, July 25th. Stifel Nicolaus boosted their target price on shares of Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a research note on Tuesday, July 29th. KeyCorp boosted their target price on shares of Cadence Design Systems from $358.00 to $405.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Finally, Wall Street Zen lowered shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday. 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 company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $364.33.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $343.95, for a total value of $343,950.00. Following the completion of the sale, the vice president directly owned 102,499 shares of the company's stock, valued at $35,254,531.05. This represents a 0.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 transaction of $60,211.80. Following the transaction, the director directly 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. Over the last three months, insiders sold 3,180 shares of company stock valued at $1,069,232. Insiders own 0.37% of the company's stock.

Cadence Design Systems Stock Performance

NASDAQ:CDNS traded up $0.12 during midday trading on Monday, reaching $373.47. The stock had a trading volume of 1,165,271 shares, compared to its average volume of 2,016,076. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $376.45. The firm's fifty day simple moving average is $346.27 and its 200-day simple moving average is $306.97. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.82 and a quick ratio of 2.67. The stock has a market capitalization of $101.77 billion, a P/E ratio of 100.94, a PEG ratio of 4.90 and a beta of 1.00.

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

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.