Cadence Design Systems, Inc. (NASDAQ:CDNS) Stake Raised by Jensen Investment Management Inc.

Key Points

• Jensen Investment Management Inc. increased its stake in Cadence Design Systems, Inc. by 29.9% in the first quarter, now holding approximately $139.16 million worth of shares.
• Cadence Design Systems reported $1.65 EPS for the latest quarter, exceeding estimates and showing a revenue increase of 20.2% year-over-year.
• Research analysts have raised their price targets for Cadence Design Systems, with Wells Fargo increasing theirs from $365 to $405, signaling a positive market outlook.

Jensen Investment Management Inc. boosted its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 29.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 547,156 shares of the software maker's stock after purchasing an additional 125,899 shares during the period. Cadence Design Systems makes up approximately 1.5% of Jensen Investment Management Inc.'s portfolio, making the stock its 25th biggest holding. Jensen Investment Management Inc. owned approximately 0.20% of Cadence Design Systems worth $139,158,000 at the end of the most recent reporting period.

Several other institutional investors also recently made changes to their positions in the stock. GAMMA Investing LLC lifted its stake in shares of Cadence Design Systems by 31,049.1% during the first quarter. GAMMA Investing LLC now owns 1,218,241 shares of the software maker's stock worth $309,835,000 after purchasing an additional 1,214,330 shares in the last quarter. Jennison Associates LLC lifted its position in shares of Cadence Design Systems by 13.2% during the first quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock worth $2,305,489,000 after purchasing an additional 1,054,702 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Cadence Design Systems by 25.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,937,675 shares of the software maker's stock valued at $882,655,000 after purchasing an additional 601,834 shares during the period. Vanguard Group Inc. grew its holdings 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 valued at $6,698,834,000 after purchasing an additional 429,955 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Cadence Design Systems by 10.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,416,269 shares of the software maker's stock worth $1,326,912,000 after buying an additional 427,418 shares during the period. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Performance

Shares of NASDAQ:CDNS traded down $2.27 during trading hours on Friday, hitting $352.06. The stock had a trading volume of 1,373,011 shares, compared to its average volume of 2,077,943. The stock's fifty day simple moving average is $319.34 and its 200 day simple moving average is $292.67. The firm has a market capitalization of $95.93 billion, a price-to-earnings ratio of 95.15, a PEG ratio of 4.73 and a beta of 0.97. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. Cadence Design Systems, Inc. has a 1-year low of $221.56 and a 1-year high of $376.45.

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

Analyst Ratings Changes

A number of research analysts recently commented on the company. Stifel Nicolaus increased their price target on Cadence Design Systems from $350.00 to $395.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Wells Fargo & Company boosted their target price on shares of Cadence Design Systems from $365.00 to $405.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. JPMorgan Chase & Co. increased their price target on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. Finally, Piper Sandler restated a "neutral" rating and set a $355.00 price objective (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $364.33.

Insider Activity at Cadence Design Systems

In related news, 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 completion of the sale, the vice president owned 104,499 shares of the company's stock, valued at $37,485,881.28. This represents a 0.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director James D. Plummer sold 868 shares of the firm's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $319.95, for a total transaction of $277,716.60. Following the transaction, the director directly owned 23,996 shares in the company, valued at approximately $7,677,520.20. The trade was a 3.49% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 4,698 shares of company stock worth $1,485,387 over the last ninety days. 1.99% of the stock is currently owned by corporate insiders.

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.