TD Waterhouse Canada Inc. Buys 67,433 Shares of Cadence Design Systems, Inc. $CDNS

Key Points

• TD Waterhouse Canada increased its Cadence Design Systems stake by 979.8% in the third quarter, purchasing 67,433 additional shares for a total holding of 74,315 shares valued at approximately $24.5 million.
• Institutional ownership remains substantial, with investors holding 84.85% of Cadence’s outstanding shares. Several major institutions also established or expanded sizable positions during the period.
• Analysts maintain a favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $404.14, despite shares trading down 1.5% at $319.51.

TD Waterhouse Canada Inc. raised its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 979.8% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 74,315 shares of the software maker's stock after buying an additional 67,433 shares during the period. TD Waterhouse Canada Inc.'s holdings in Cadence Design Systems were worth $24,538,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Assenagon Asset Management S.A. raised its holdings in Cadence Design Systems by 1,097.5% during the third quarter. Assenagon Asset Management S.A. now owns 2,818,141 shares of the software maker's stock worth $930,522,000 after purchasing an additional 2,582,812 shares in the last quarter. Legal & General Group Plc acquired a new stake in Cadence Design Systems in the second quarter worth approximately $702,615,000. Jupiter Topco LLC bought a new position in Cadence Design Systems during the 2nd quarter valued at $688,746,000. Bank of New York Mellon Corp bought a new position in Cadence Design Systems during the 2nd quarter valued at $607,350,000. Finally, Deutsche Bank AG bought a new position in Cadence Design Systems during the 2nd quarter valued at $532,338,000. 84.85% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the business's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the sale, the director directly owned 39,544 shares of the company's stock, valued at $13,843,168.08. The trade was a 3.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita Brennan sold 180 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $285.51, for a total value of $51,391.80. Following the sale, the director directly owned 7,824 shares of the company's stock, valued at approximately $2,233,830.24. This represents a 2.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 8,960 shares of company stock valued at $2,834,139. Insiders own 0.49% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on CDNS shares. FBN Securities began coverage on Cadence Design Systems in a research note on Friday, September 11th. They issued an "outperform" rating and a $375.00 price objective on the stock. Bank of America upped their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Piper Sandler lifted their target price on Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a report on Tuesday, July 28th. Robert W. Baird boosted their price target on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 28th. Finally, Rosenblatt Securities boosted their price target on shares of Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $404.14.

Cadence Design Systems Trading Down 1.5%

Shares of NASDAQ:CDNS opened at $319.51 on Friday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The stock has a market capitalization of $87.99 billion, a price-to-earnings ratio of 63.52, a PEG ratio of 3.42 and a beta of 1.13. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69. The company has a 50 day moving average price of $318.85 and a 200 day moving average price of $338.84.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the prior year, the firm earned $1.65 EPS. The company's quarterly revenue was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. On average, research analysts anticipate that Cadence Design Systems, Inc. will post 6.41 EPS for the current fiscal year.

Cadence Design Systems 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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