Fred Alger Management LLC Grows Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Fred Alger Management LLC increased its stake in Cadence Design Systems by 0.2%, now holding 428,420 shares valued at approximately $108.96 million, making it the 26th largest holding in their portfolio.
• Cadence Design Systems reported a 20.2% year-over-year increase in quarterly revenue, reaching $1.28 billion, and topped EPS estimates by $0.09.
• A significant number of institutional investors are showing increased interest in Cadence Design Systems, with 84.85% of the stock currently owned by institutional shareholders.

Fred Alger Management LLC increased its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 0.2% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 428,420 shares of the software maker's stock after acquiring an additional 993 shares during the quarter. Cadence Design Systems comprises about 0.6% of Fred Alger Management LLC's holdings, making the stock its 26th biggest holding. Fred Alger Management LLC owned 0.16% of Cadence Design Systems worth $108,960,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Park Square Financial Group LLC bought a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $348,000. Merit Financial Group LLC boosted its position in shares of Cadence Design Systems by 42.6% in the first quarter. Merit Financial Group LLC now owns 3,165 shares of the software maker's stock valued at $805,000 after acquiring an additional 946 shares during the period. Novem Group boosted its position in shares of 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 acquiring an additional 945 shares during the period. Seilern Investment Management Ltd bought a new position in shares of Cadence Design Systems in the first quarter valued at approximately $64,800,000. Finally, Integrated Advisors Network LLC boosted its position in shares of Cadence Design Systems by 156.9% in the fourth quarter. Integrated Advisors Network LLC now owns 3,406 shares of the software maker's stock valued at $1,023,000 after acquiring an additional 2,080 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have issued reports on CDNS. Rosenblatt Securities reiterated a "neutral" rating and set a $300.00 target price on shares of Cadence Design Systems in a research report on Friday, July 25th. Robert W. Baird lifted their target price on shares of Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a research report on Monday, July 28th. JPMorgan Chase & Co. lifted their target price on shares of Cadence Design Systems from $330.00 to $390.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Loop Capital lifted their target price on shares of Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Finally, Berenberg Bank set a $400.00 target price on shares of Cadence Design Systems in a research report on Wednesday, July 30th. Twelve investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $364.33.

Cadence Design Systems Price Performance

Shares of CDNS stock traded down $11.22 during trading hours on Friday, hitting $343.48. 1,616,772 shares of the company's stock were exchanged, compared to its average volume of 1,596,662. The company has a current ratio of 2.82, a quick ratio of 2.67 and a debt-to-equity ratio of 0.49. Cadence Design Systems, Inc. has a 12-month low of $221.56 and a 12-month high of $376.45. The business's 50 day simple moving average is $342.75 and its 200-day simple moving average is $302.64. The company has a market capitalization of $93.59 billion, a PE ratio of 92.83, a PEG ratio of 4.65 and a beta of 1.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 EPS 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 company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. During the same period in the prior year, the business posted $1.28 EPS. The firm's revenue was up 20.2% compared to the same quarter last year. 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 anticipate that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Insiders Place Their Bets

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of the company's 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 transaction, the vice president directly owned 102,499 shares in the company, valued at approximately $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 can be accessed through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the company'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 completion of the sale, the director directly 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 have sold a total of 3,180 shares of company stock valued at $1,069,232 over the last quarter. 1.99% of the stock is currently owned by company insiders.

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.