DSM Capital Partners LLC Cuts Stock Position in Cadence Design Systems, Inc. $CDNS

Key Points

• DSM Capital Partners LLC reduced its stake in Cadence Design Systems, Inc. by 4.8% in the second quarter, holding 265,921 shares after selling 13,277 during this period, which represents about 1.2% of its portfolio.
• Several other hedge funds have increased their investments in Cadence, with Novem Group raising their stake by 30.3% and Brookstone Capital Management by 19.9% in the first quarter.
• Cadence reported earnings of $1.65 per share, exceeding forecasts, with a revenue of $1.28 billion, indicating a 20.2% year-over-year increase in revenue.

DSM Capital Partners LLC lessened its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 4.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 265,921 shares of the software maker's stock after selling 13,277 shares during the quarter. Cadence Design Systems comprises approximately 1.2% of DSM Capital Partners LLC's portfolio, making the stock its 24th biggest position. DSM Capital Partners LLC owned about 0.10% of Cadence Design Systems worth $81,944,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Novem Group lifted its position in Cadence Design Systems by 30.3% in the first quarter. Novem Group now owns 4,067 shares of the software maker's stock valued at $1,034,000 after purchasing an additional 945 shares during the period. Brookstone Capital Management lifted its position in Cadence Design Systems by 19.9% in the first quarter. Brookstone Capital Management now owns 17,430 shares of the software maker's stock valued at $4,433,000 after purchasing an additional 2,898 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in Cadence Design Systems by 10.9% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 142,994 shares of the software maker's stock valued at $44,064,000 after purchasing an additional 14,022 shares during the period. GAMMA Investing LLC lifted its position in Cadence Design Systems by 22.5% in the first quarter. GAMMA Investing LLC now owns 4,790 shares of the software maker's stock valued at $1,218,000 after purchasing an additional 879 shares during the period. Finally, Amalgamated Bank lifted its position in Cadence Design Systems by 2.2% in the first quarter. Amalgamated Bank now owns 58,225 shares of the software maker's stock valued at $14,808,000 after purchasing an additional 1,228 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Stifel Nicolaus raised their price objective on shares of Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Piper Sandler reaffirmed a "neutral" rating and issued a $355.00 target price (up from $328.00) on shares of Cadence Design Systems in a report on Tuesday, July 29th. JPMorgan Chase & Co. increased their target price on shares of Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cadence Design Systems in a report on Wednesday. Finally, The Goldman Sachs Group assumed coverage on shares of Cadence Design Systems in a report on Thursday, July 10th. They issued a "buy" rating and a $380.00 target price for the company. Fourteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average price target of $368.53.

Cadence Design Systems Trading Down 6.2%

Shares of CDNS opened at $327.00 on Friday. 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 firm has a 50 day simple moving average of $351.68 and a 200-day simple moving average of $316.56. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $376.45. The stock has a market cap of $89.10 billion, a price-to-earnings ratio of 88.38, a price-to-earnings-growth ratio of 4.57 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, topping 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 business had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.25 billion. During the same period last year, the company posted $1.28 EPS. The company'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. Equities analysts forecast that Cadence Design Systems, Inc. will post 5.41 EPS for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $348.27, for a total transaction of $348,270.00. Following the completion of the transaction, the vice president directly owned 99,672 shares of the company's stock, valued at $34,712,767.44. This trade represents a 0.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction that occurred on 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 approximately $2,619,213.30. This trade represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 10,680 shares of company stock valued at $3,729,852 in the last ninety days. Corporate insiders own 1.99% of the company's stock.

Cadence Design Systems 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.

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