Kodai Capital Management LP Decreases Holdings in Cadence Design Systems, Inc. $CDNS

Key Points

• Kodai Capital Management LP has reduced its stake in Cadence Design Systems by 31.9%, selling 10,185 shares, and now holds 21,764 shares worth approximately $5.54 million.
• Cadence's Q2 earnings exceeded expectations with a reported $1.65 EPS against a consensus estimate of $1.56, alongside revenue of $1.28 billion, which marks a year-over-year increase of 20.2%.
• Several analysts have recently upgraded the stock, with price targets ranging from $364.33 to $405.00, indicating a consensus rating of "Moderate Buy."

Kodai Capital Management LP decreased its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 31.9% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 21,764 shares of the software maker's stock after selling 10,185 shares during the quarter. Kodai Capital Management LP's holdings in Cadence Design Systems were worth $5,535,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the stock. Vanguard Group Inc. increased its stake 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. Jennison Associates LLC increased its stake in Cadence Design Systems by 13.2% during the 1st quarter. Jennison Associates LLC now owns 9,064,953 shares of the software maker's stock valued at $2,305,489,000 after purchasing an additional 1,054,702 shares in the last quarter. 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 valued at $1,326,912,000 after purchasing an additional 427,418 shares in the last quarter. Janus Henderson Group PLC increased its stake in Cadence Design Systems by 12.7% during the 4th quarter. Janus Henderson Group PLC now owns 2,530,293 shares of the software maker's stock valued at $760,314,000 after purchasing an additional 285,617 shares in the last quarter. Finally, Invesco Ltd. increased its stake in Cadence Design Systems by 14.0% during the 1st quarter. Invesco Ltd. now owns 2,416,284 shares of the software maker's stock valued at $614,534,000 after purchasing an additional 296,983 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Stock Performance

NASDAQ CDNS traded down $3.86 during mid-day trading on Monday, reaching $350.43. 1,303,717 shares of the stock were exchanged, compared to its average volume of 1,395,147. The business's 50 day moving average is $335.53 and its 200-day moving average is $297.80. Cadence Design Systems, Inc. has a 1 year low of $221.56 and a 1 year high of $376.45. The company has a market capitalization of $95.49 billion, a P/E ratio of 94.71, a P/E/G ratio of 4.60 and a beta of 1.00. 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 (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the prior year, the firm posted $1.28 earnings per share. The firm's quarterly 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 forecast that Cadence Design Systems, Inc. will post 5.41 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. JPMorgan Chase & Co. increased their price objective on shares of Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Piper Sandler reiterated a "neutral" rating and issued a $355.00 price objective (up previously from $328.00) on shares of Cadence Design Systems in a research note on Tuesday, July 29th. The Goldman Sachs Group assumed coverage on shares of Cadence Design Systems in a research note on Thursday, July 10th. They issued a "buy" rating and a $380.00 price objective on the stock. Robert W. Baird increased their price objective on shares of Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Finally, Rosenblatt Securities reiterated a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a research note on Friday, July 25th. Twelve investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $364.33.

Insiders Place Their Bets

In related news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Friday, August 1st. The shares were sold at an average price of $358.72, for a total transaction of $358,720.00. Following the sale, the vice president directly owned 104,499 shares of the company's stock, valued at approximately $37,485,881.28. This represents a 0.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction on 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 directly owned 8,010 shares in the company, valued at $2,435,040. This trade represents a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 3,180 shares of company stock worth $1,021,790 over the last three months. 0.37% of the stock is currently owned by 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.