King Luther Capital Management Corp Decreases Stock Position in Cadence Design Systems, Inc. (NASDAQ:CDNS)

Key Points

• King Luther Capital Management Corp reduced its stake in Cadence Design Systems by 12.5%, selling 17,931 shares to hold 125,567 shares valued at approximately $31.9 million.
• Cadence Design Systems reported $1.65 earnings per share for the last quarter, exceeding analyst estimates of $1.56, and experienced a year-over-year revenue increase of 20.2% to $1.28 billion.
• Wall Street analysts have shown a positive outlook for Cadence Design Systems, with price targets raised significantly, including a hike from $325 to $390 by Needham & Company, indicating strong confidence in the company's future performance.

King Luther Capital Management Corp reduced its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 12.5% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 125,567 shares of the software maker's stock after selling 17,931 shares during the quarter. King Luther Capital Management Corp's holdings in Cadence Design Systems were worth $31,935,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Park Square Financial Group LLC bought a new position in Cadence Design Systems during the fourth quarter valued at approximately $348,000. Merit Financial Group LLC grew its position in Cadence Design Systems by 42.6% during 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 last quarter. Novem Group grew its position in Cadence Design Systems by 30.3% during 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 last quarter. Seilern Investment Management Ltd bought a new position in Cadence Design Systems during the first quarter valued at approximately $64,800,000. Finally, Integrated Advisors Network LLC grew its holdings 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 worth $1,023,000 after purchasing an additional 2,080 shares during the last quarter. 84.85% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director James D. Plummer sold 868 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $319.95, for a total transaction of $277,716.60. Following the completion of the transaction, the director directly owned 23,996 shares in the company, valued at approximately $7,677,520.20. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $358.72, for a total value of $358,720.00. Following the transaction, 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 disclosure for this sale can be found here. In the last ninety days, insiders sold 4,698 shares of company stock worth $1,485,387. 0.37% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Stifel Nicolaus raised their target price on shares of Cadence Design Systems from $350.00 to $395.00 and gave the stock a "buy" rating in a 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. Wells Fargo & Company raised their target price on shares of Cadence Design Systems from $365.00 to $405.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Bank of America raised their target price on shares of Cadence Design Systems from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. 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 on the stock. One analyst has rated the stock with a sell rating, three have assigned a hold rating and twelve have assigned a buy rating to the company. According to data from 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

CDNS stock traded up $4.52 during midday trading on Tuesday, hitting $353.61. The company's stock had a trading volume of 1,263,038 shares, compared to its average volume of 1,964,507. Cadence Design Systems, Inc. has a 12 month low of $221.56 and a 12 month high of $376.45. The company has a quick ratio of 2.67, a current ratio of 2.82 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $96.36 billion, a price-to-earnings ratio of 95.57, a price-to-earnings-growth ratio of 4.58 and a beta of 0.97. The company has a 50 day moving average of $321.68 and a two-hundred day moving average of $292.87.

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

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.