Cadence Design Systems, Inc. (NASDAQ:CDNS) Shares Purchased by Freemont Management S.A.

Key Points

• Freemont Management S.A. significantly increased its stake in Cadence Design Systems by 89.6% in Q1, totaling $2.31 million in value.
• Institutional investors collectively own 84.85% of Cadence Design Systems, indicating strong institutional confidence in the company.
• Several analysts have updated their ratings on Cadence Design Systems, with Mizuho raising their price target to $360 and a consensus target price of $332.57 among analysts.

Freemont Management S.A. lifted its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 89.6% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 9,100 shares of the software maker's stock after buying an additional 4,300 shares during the quarter. Freemont Management S.A.'s holdings in Cadence Design Systems were worth $2,314,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Legacy Capital Wealth Partners LLC boosted its holdings in shares of Cadence Design Systems by 2.8% in the first quarter. Legacy Capital Wealth Partners LLC now owns 1,214 shares of the software maker's stock valued at $309,000 after acquiring an additional 33 shares during the period. Accredited Investors Inc. boosted its holdings in shares of Cadence Design Systems by 1.7% in the fourth quarter. Accredited Investors Inc. now owns 2,176 shares of the software maker's stock valued at $654,000 after acquiring an additional 36 shares during the period. Principal Street Partners LLC boosted its holdings in shares of Cadence Design Systems by 2.6% in the fourth quarter. Principal Street Partners LLC now owns 1,455 shares of the software maker's stock valued at $437,000 after acquiring an additional 37 shares during the period. Oarsman Capital Inc. boosted its holdings in shares of Cadence Design Systems by 3.8% in the fourth quarter. Oarsman Capital Inc. now owns 1,042 shares of the software maker's stock valued at $313,000 after acquiring an additional 38 shares during the period. Finally, Greenleaf Trust boosted its holdings in shares of Cadence Design Systems by 0.7% in the first quarter. Greenleaf Trust now owns 5,802 shares of the software maker's stock valued at $1,476,000 after acquiring an additional 39 shares during the period. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems Price Performance

Cadence Design Systems stock traded up $29.47 during trading hours on Tuesday, hitting $363.23. The stock had a trading volume of 2,606,027 shares, compared to its average volume of 2,063,847. The company has a debt-to-equity ratio of 0.52, a current ratio of 3.07 and a quick ratio of 2.90. The stock has a market capitalization of $99.18 billion, a price-to-earnings ratio of 91.92, a PEG ratio of 4.62 and a beta of 0.99. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $370.61. The stock's fifty day moving average is $309.66 and its two-hundred day moving average is $288.77.

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 29.36% and a net margin of 22.18%. Cadence Design Systems's revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.28 earnings per share. As a group, analysts predict that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Anirudh Devgan sold 10,737 shares of the stock in a transaction on Friday, May 2nd. The stock was sold at an average price of $310.00, for a total transaction of $3,328,470.00. Following the sale, the chief executive officer owned 209,548 shares of the company's stock, valued at $64,959,880. This trade represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the sale, the director directly owned 8,010 shares in the company, valued at approximately $2,435,040. The trade was a 2.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 15,085 shares of company stock worth $4,652,087 in the last ninety days. 0.37% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several research firms have recently weighed in on CDNS. Rosenblatt Securities reissued a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a report on Friday. Piper Sandler restated a "neutral" rating and set a $355.00 price target (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday. Loop Capital upped their price target on Cadence Design Systems from $340.00 to $370.00 and gave the stock a "buy" rating in a research note on Monday, July 14th. Needham & Company LLC upped their price target on Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Wall Street Zen cut Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and twelve have given a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $353.33.

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.