SCS Capital Management LLC Buys New Shares in Cadence Design Systems, Inc. $CDNS

Key Points

• SCS Capital Management LLC has acquired a new stake in Cadence Design Systems, Inc., purchasing 955 shares valued at approximately $243,000.
• Institutional investors own 84.85% of Cadence Design Systems' stock, indicating significant confidence in the company's prospects.
• Cadence Design Systems reported a 20.2% year-over-year revenue increase, with quarterly earnings of $1.65 per share, surpassing analysts' expectations.

SCS Capital Management LLC bought a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 955 shares of the software maker's stock, valued at approximately $243,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Cadence Design Systems by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,729,026 shares of the software maker's stock valued at $1,202,733,000 after acquiring an additional 312,757 shares during the last quarter. Optimize Financial Inc grew its holdings in Cadence Design Systems by 12.1% during the first quarter. Optimize Financial Inc now owns 7,728 shares of the software maker's stock worth $1,965,000 after purchasing an additional 837 shares during the period. Empowered Funds LLC grew its holdings in Cadence Design Systems by 2.5% during the first quarter. Empowered Funds LLC now owns 15,076 shares of the software maker's stock worth $3,834,000 after purchasing an additional 368 shares during the period. MBB Public Markets I LLC bought a new position in Cadence Design Systems during the first quarter worth about $312,000. Finally, Ascent Group LLC grew its holdings in Cadence Design Systems by 17.7% during the first quarter. Ascent Group LLC now owns 1,398 shares of the software maker's stock worth $356,000 after purchasing an additional 210 shares during the period. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Trading Down 3.2%

Shares of NASDAQ:CDNS opened at $343.48 on Friday. Cadence Design Systems, Inc. has a 12-month low of $221.56 and a 12-month high of $376.45. The stock has a market cap of $93.59 billion, a PE ratio of 92.83, a P/E/G ratio of 4.65 and a beta of 1.00. The business has a 50 day moving average of $342.75 and a 200-day moving average of $302.31. The company has a quick ratio of 2.67, a current ratio of 2.82 and a debt-to-equity ratio of 0.49.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data 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 return on equity of 29.65% and a net margin of 19.88%.The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.25 billion. During the same quarter in the previous year, the company posted $1.28 earnings per share. The business'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. As a group, equities research analysts forecast that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts recently commented on CDNS shares. Robert W. Baird lifted their price target on Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Piper Sandler reiterated a "neutral" rating and set a $355.00 price target (up previously from $328.00) on shares of Cadence Design Systems in a report on Tuesday, July 29th. JPMorgan Chase & Co. lifted their price target on Cadence Design Systems from $330.00 to $390.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Berenberg Bank set a $400.00 price target on Cadence Design Systems in a report on Wednesday, July 30th. Finally, KeyCorp lifted their price target on Cadence Design Systems from $358.00 to $405.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Twelve investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $364.33.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $343.95, for a total value of $343,950.00. Following the completion of the sale, the vice president directly owned 102,499 shares in the company, valued at approximately $35,254,531.05. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $334.51, for a total value of $60,211.80. Following the completion of the sale, the director 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. Over the last quarter, insiders sold 3,180 shares of company stock valued at $1,069,232. 1.99% of the stock is currently owned by corporate 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.

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