United Services Automobile Association Makes New Investment in Cadence Design Systems, Inc. $CDNS

Key Points

• United Services Automobile Association has made a significant investment in Cadence Design Systems by purchasing 6,370 shares valued at approximately $1,635,000.
• Cadence Design Systems has experienced a strong quarterly performance, reporting a 20.2% increase in revenue year-over-year, with earnings per share beating expectations at $1.65.
• Analysts show confidence in Cadence with multiple firms raising their target prices, including Mizuho and Loop Capital, which now set target prices of $375.00 and $390.00 respectively.

United Services Automobile Association purchased a new stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 6,370 shares of the software maker's stock, valued at approximately $1,635,000.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Legacy Capital Wealth Partners LLC increased its holdings in shares of Cadence Design Systems by 2.8% during the first quarter. Legacy Capital Wealth Partners LLC now owns 1,214 shares of the software maker's stock valued at $309,000 after acquiring an additional 33 shares in the last quarter. Empower Advisory Group LLC increased its holdings in shares of Cadence Design Systems by 4.1% in the 1st quarter. Empower Advisory Group LLC now owns 911 shares of the software maker's stock worth $232,000 after purchasing an additional 36 shares in the last quarter. Gamco Investors INC. ET AL increased its holdings in shares of Cadence Design Systems by 0.3% in the 1st quarter. Gamco Investors INC. ET AL now owns 13,337 shares of the software maker's stock worth $3,392,000 after purchasing an additional 36 shares in the last quarter. Principal Street Partners LLC increased its holdings in shares of Cadence Design Systems by 2.6% in the 4th quarter. Principal Street Partners LLC now owns 1,455 shares of the software maker's stock worth $437,000 after purchasing an additional 37 shares in the last quarter. Finally, Greenleaf Trust increased its holdings in shares of Cadence Design Systems by 0.7% in the 1st quarter. Greenleaf Trust now owns 5,802 shares of the software maker's stock worth $1,476,000 after purchasing an additional 39 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors.

Insider Activity

In other news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was 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. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total value of $54,720.00. Following the completion of the transaction, the director owned 8,010 shares in the company, valued at $2,435,040. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,180 shares of company stock worth $1,365,740 over the last 90 days. Company insiders own 0.37% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have commented on CDNS. Mizuho lifted their target price on Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a report on Tuesday, July 29th. Loop Capital lifted their target price on Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Wall Street Zen lowered Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, August 31st. Berenberg Bank set a $400.00 price target on Cadence Design Systems in a research note on Wednesday, July 30th. Finally, Needham & Company LLC raised their price target 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. Twelve analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $364.33.

Cadence Design Systems Price Performance

NASDAQ CDNS opened at $351.01 on Monday. The company has a market capitalization of $95.65 billion, a PE ratio of 94.87, a price-to-earnings-growth ratio of 4.60 and a beta of 1.00. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. The business's fifty day moving average is $339.27 and its 200 day moving average is $299.55. Cadence Design Systems, Inc. has a fifty-two week low of $221.56 and a fifty-two week high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results 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. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.Cadence Design Systems's quarterly revenue was up 20.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.28 earnings per share. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. Sell-side analysts predict that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

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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