Morningstar Investment Management LLC Takes $260,000 Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Morningstar Investment Management LLC invested approximately $260,000 in Cadence Design Systems, acquiring 844 shares in the second quarter.
• A significant number of institutional investors, including Brighton Jones LLC and GAMMA Investing LLC, have recently increased their holdings in Cadence Design Systems, indicating strong institutional interest.
• Cadence Design Systems recently reported earnings of $1.65 per share, surpassing analysts' expectations and revealing a 20.2% year-over-year revenue increase, suggesting robust financial performance.

Morningstar Investment Management LLC bought a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 844 shares of the software maker's stock, valued at approximately $260,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of CDNS. Brighton Jones LLC raised its holdings in Cadence Design Systems by 80.2% during the 4th quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock valued at $456,000 after buying an additional 676 shares during the period. GAMMA Investing LLC raised its holdings in Cadence Design Systems by 22.5% during the 1st quarter. GAMMA Investing LLC now owns 4,790 shares of the software maker's stock valued at $1,218,000 after buying an additional 879 shares during the period. Dynamic Advisor Solutions LLC raised its holdings in Cadence Design Systems by 9.5% during the 1st quarter. Dynamic Advisor Solutions LLC now owns 3,613 shares of the software maker's stock valued at $919,000 after buying an additional 313 shares during the period. Sowell Financial Services LLC purchased a new stake in Cadence Design Systems during the 1st quarter valued at $830,000. Finally, Sagespring Wealth Partners LLC raised its holdings in Cadence Design Systems by 33.5% during the 1st quarter. Sagespring Wealth Partners LLC now owns 2,851 shares of the software maker's stock valued at $725,000 after buying an additional 715 shares during the period. 84.85% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $348.27, for a total value of $348,270.00. Following the completion of the sale, the vice president directly owned 99,672 shares of the company's stock, valued at $34,712,767.44. This represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 of the company's stock, valued at approximately $2,619,213.30. This trade represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 10,680 shares of company stock valued at $3,729,852 over the last three months. 0.37% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Berenberg Bank set a $400.00 price target on Cadence Design Systems in a report on Wednesday, July 30th. 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. BNP Paribas Exane initiated coverage on Cadence Design Systems in a report on Thursday, October 2nd. They set an "outperform" rating and a $400.00 price target on the stock. Needham & Company LLC increased their target price on Cadence Design Systems from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Finally, Mizuho increased their target price on Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 29th. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $368.53.

Cadence Design Systems Stock Performance

CDNS stock opened at $325.75 on Wednesday. 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 business's fifty day simple moving average is $350.33 and its two-hundred day simple moving average is $317.89. Cadence Design Systems, Inc. has a twelve month low of $221.56 and a twelve month high of $376.45. The firm has a market cap of $88.76 billion, a price-to-earnings ratio of 88.04, a PEG ratio of 4.36 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data 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. 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 during the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the previous year, the company posted $1.28 earnings per share. The firm's quarterly revenue was up 20.2% on a year-over-year basis. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. Analysts predict that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

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.

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