DSM Capital Partners LLC Sells 4,880 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• DSM Capital Partners LLC reduced its stake in Cadence Design Systems by 1.7% in the first quarter, owning 279,198 shares valued at approximately $71 million.
• Cadence Design Systems reported $1.65 EPS for the last quarter, exceeding analysts' expectations of $1.56, alongside a revenue of $1.28 billion, marking a year-over-year growth of 20.2%.
• Multiple analysts have issued positive ratings for Cadence Design Systems, with several raising their price targets, leading to an average target of $364.33 and a consensus rating of "Moderate Buy."

DSM Capital Partners LLC decreased its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 1.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 279,198 shares of the software maker's stock after selling 4,880 shares during the period. Cadence Design Systems accounts for about 1.2% of DSM Capital Partners LLC's portfolio, making the stock its 23rd biggest position. DSM Capital Partners LLC owned 0.10% of Cadence Design Systems worth $71,008,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in CDNS. Brighton Jones LLC increased its stake in shares of Cadence Design Systems by 80.2% in the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock valued at $456,000 after acquiring an additional 676 shares in the last quarter. Highview Capital Management LLC DE raised its holdings in shares of Cadence Design Systems by 2.7% during the fourth quarter. Highview Capital Management LLC DE now owns 6,304 shares of the software maker's stock valued at $1,894,000 after purchasing an additional 163 shares during the period. Townsquare Capital LLC boosted its position in shares of Cadence Design Systems by 8.7% during the 4th quarter. Townsquare Capital LLC now owns 5,068 shares of the software maker's stock worth $1,523,000 after purchasing an additional 404 shares in the last quarter. Synovus Financial Corp increased its position in Cadence Design Systems by 4.0% in the 4th quarter. Synovus Financial Corp now owns 2,965 shares of the software maker's stock valued at $891,000 after buying an additional 114 shares in the last quarter. Finally, SageView Advisory Group LLC raised its stake in Cadence Design Systems by 22.0% during the 4th quarter. SageView Advisory Group LLC now owns 1,271 shares of the software maker's stock worth $382,000 after buying an additional 229 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock traded down $6.2050 on Tuesday, reaching $350.0450. 427,568 shares of the company traded hands, compared to its average volume of 2,041,023. 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 market capitalization of $95.38 billion, a PE ratio of 94.71, a PEG ratio of 4.59 and a beta of 0.97. The company has a 50 day moving average of $325.98 and a 200 day moving average of $294.43. Cadence Design Systems, Inc. has a 52 week low of $221.56 and a 52 week high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $1.28 billion during 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%.Cadence Design Systems's revenue was up 20.2% compared to the same quarter last year. During the same period in the prior 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. Equities analysts forecast that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on CDNS shares. Mizuho upped their target price on Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 29th. Wall Street Zen cut shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Piper Sandler restated a "neutral" rating and issued a $355.00 target price (up previously from $328.00) on shares of Cadence Design Systems in a report on Tuesday, July 29th. JPMorgan Chase & Co. boosted their price objective on Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Finally, Needham & Company LLC raised their target price on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Twelve research 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. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $364.33.

Insider Activity

In related news, Director Ita M. Brennan sold 180 shares of the stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total transaction of $54,720.00. Following the sale, the director owned 8,010 shares of the company's stock, valued at approximately $2,435,040. This represents a 2.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $358.72, for a total value of $358,720.00. Following the sale, the vice president owned 104,499 shares in the company, valued at approximately $37,485,881.28. This represents a 0.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,830 shares of company stock worth $1,207,671. Insiders own 0.37% of the company's stock.

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.