Patton Fund Management Inc. Buys New Shares in Cadence Design Systems, Inc. $CDNS

Key Points

• Patton Fund Management Inc. purchased 759 shares of Cadence Design Systems, Inc. for approximately $234,000 in the second quarter, marking a new investment stake in the company.
• Cadence reported earnings of $1.65 per share, exceeding analysts' expectations, with revenue of $1.28 billion in the last quarter, a 20.2% increase year-over-year.
• Wells Fargo raised its target price for Cadence stock from $365.00 to $405.00, reflecting an "overweight" rating, while a range of analysts maintains a consensus rating of "Moderate Buy" with a target price of $364.33.

Patton Fund Management Inc. purchased a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 759 shares of the software maker's stock, valued at approximately $234,000.

A number of other hedge funds also recently modified their holdings of the company. Smallwood Wealth Investment Management LLC bought a new position in Cadence Design Systems in the first quarter worth $25,000. Costello Asset Management INC acquired a new stake in shares of Cadence Design Systems during the 1st quarter valued at about $25,000. Saudi Central Bank bought a new stake in Cadence Design Systems in the first quarter valued at about $27,000. Valley National Advisers Inc. raised its position in Cadence Design Systems by 707.1% in the first quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock worth $28,000 after purchasing an additional 99 shares in the last quarter. Finally, Meeder Asset Management Inc. boosted its holdings in Cadence Design Systems by 36.5% during the first quarter. Meeder Asset Management Inc. now owns 172 shares of the software maker's stock valued at $44,000 after purchasing an additional 46 shares in the last quarter. Institutional investors own 84.85% of the company's stock.

Cadence Design Systems Stock Down 0.3%

Shares of NASDAQ CDNS opened at $350.11 on Monday. Cadence Design Systems, Inc. has a 12-month low of $221.56 and a 12-month high of $376.45. The firm's 50-day simple moving average is $350.50 and its 200 day simple moving average is $311.20. 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 company has a market cap of $95.40 billion, a price-to-earnings ratio of 94.62, a price-to-earnings-growth ratio of 4.59 and a beta of 1.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share 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 company 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 firm posted $1.28 earnings per share. The company's 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. On average, research analysts expect that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Wells Fargo & Company raised their target price on Cadence Design Systems from $365.00 to $405.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Sunday, September 21st. Piper Sandler reiterated a "neutral" rating and set a $355.00 target price (up previously from $328.00) on shares of Cadence Design Systems in a research report on Tuesday, July 29th. Rosenblatt Securities reissued a "neutral" rating and set a $300.00 price target on shares of Cadence Design Systems in a report on Friday, July 25th. Finally, KeyCorp upped their price objective on shares of Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $364.33.

Insiders Place Their Bets

In other news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $334.51, for a total value 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $343.95, for a total value of $343,950.00. Following the transaction, the vice president directly owned 102,499 shares in the company, valued at $35,254,531.05. This trade represents a 0.97% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 3,180 shares of company stock worth $1,069,232 over the last quarter. Corporate insiders own 0.37% of the company's stock.

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.

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