Pinnacle Associates Ltd. Sells 8,701 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• Pinnacle Associates cut its Cadence Design Systems stake by 86.8% in the third quarter, selling 8,701 shares and retaining 1,321 shares worth approximately $436,000.
• Cadence reported quarterly earnings of $2.11 per share, exceeding estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. Institutional investors collectively own 84.85% of the company.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $404.14 price target, although Wall Street Zen downgraded the stock to “Hold.” Shares recently opened at $316.49.

Pinnacle Associates Ltd. lessened its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 86.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,321 shares of the software maker's stock after selling 8,701 shares during the period. Pinnacle Associates Ltd.'s holdings in Cadence Design Systems were worth $436,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the stock. Van ECK Associates Corp lifted its holdings in shares of Cadence Design Systems by 21.8% during the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock worth $1,835,227,000 after acquiring an additional 874,392 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Cadence Design Systems by 1.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock valued at $1,270,704,000 after acquiring an additional 48,937 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Cadence Design Systems by 1,097.5% in the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock valued at $930,522,000 after acquiring an additional 2,582,812 shares during the last quarter. Legal & General Group Plc purchased a new stake in Cadence Design Systems during the second quarter valued at about $702,615,000. Finally, Jupiter Topco LLC purchased a new stake in Cadence Design Systems during the second quarter valued at about $688,746,000. Institutional investors own 84.85% of the company's stock.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $316.49 on Monday. The stock has a market cap of $87.16 billion, a PE ratio of 62.92, a PEG ratio of 3.38 and a beta of 1.13. The company's fifty day moving average is $318.19 and its 200 day moving average is $340.75. Cadence Design Systems, Inc. has a 52 week low of $262.75 and a 52 week high of $416.69. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the previous year, the firm posted $1.65 earnings per share. The firm's revenue for the quarter was up 24.2% on a year-over-year basis. Research analysts anticipate that Cadence Design Systems, Inc. will post 6.42 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the sale, the director directly owned 39,544 shares in the company, valued at $13,843,168.08. This represents a 3.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $339.00, for a total value of $94,920.00. Following the transaction, the vice president owned 31,720 shares in the company, valued at approximately $10,753,080. The trade was a 0.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 8,960 shares of company stock worth $2,834,139 in the last ninety days. Corporate insiders own 0.49% of the company's stock.

Analyst Ratings Changes

CDNS has been the subject of a number of research reports. Wall Street Zen cut Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Tuesday, October 20th. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Benchmark reissued a "buy" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Morgan Stanley restated an "overweight" rating and issued a $400.00 target price (up from $370.00) on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Finally, Weiss Ratings raised Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and a consensus price target of $404.14.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips.

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