Sands Capital Management LLC has increased its stake in Cadence Design Systems, Inc. (NASDAQ: CDNS) by 1.1% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The investment firm now holds 308,191 shares of the software company, having acquired an additional 3,472 shares during the quarter. This brings the total value of Sands Capital’s holdings in Cadence to approximately $94.97 million.
In addition to Sands Capital, several other institutional investors have also made moves regarding their positions in Cadence. Twin Peaks Wealth Advisors LLC purchased a new stake valued at around $129,000. Berbice Capital Management LLC increased its investment by 13.6%, now owning 585 shares worth $180,000 after buying 70 additional shares. Groupe la Francaise expanded its stake by 48.3%, holding 53,483 shares valued at $16.41 million. Similarly, Beacon Pointe Advisors LLC raised its holdings by 38.3%, now possessing 2,001 shares worth $617,000, while Arjuna Capital increased its stake by 8.4%, bringing its total to 919 shares valued at $283,000. Institutional investors collectively own 84.85% of the company’s stock.
Analysts have also shown interest in Cadence Design Systems, upgrading their ratings and price targets. Wells Fargo & Company raised its target price from $405.00 to $410.00, maintaining an “overweight” rating. Likewise, JPMorgan Chase & Co. increased its price objective from $390.00 to $405.00, also assigning an “overweight” rating. BNP Paribas began coverage with an “outperform” rating, setting a target price of $400.00. Overall, fifteen analysts rate the stock as a Buy, while four consider it a Hold, resulting in a consensus rating of “Moderate Buy” with an average target price of $379.11.
As of October 25, 2023, shares of Cadence Design Systems opened at $317.94. The company has shown impressive performance over the past year, with a 52-week low of $221.56 and a high of $376.45. The stock’s fifty-day moving average stands at $329.40, while the two-hundred-day moving average is $329.49. Cadence Design Systems boasts a market capitalization of $86.54 billion and a price-to-earnings (P/E) ratio of 81.94.
Recently, on October 27, 2023, the company released its quarterly earnings report, revealing earnings per share (EPS) of $1.93, surpassing analysts’ expectations of $1.79 by $0.14. The firm reported revenue of $1.34 billion, exceeding consensus estimates of $1.32 billion. This represents a year-over-year revenue increase of 10.1%. The company has provided guidance for fiscal year 2025 with EPS expectations between $7.020 and $7.080, and for Q4 2025, EPS guidance is set between $1.880 and $1.940. Analysts project that Cadence will report $5.41 EPS for the current year.
In terms of insider trading activity, Vice President Paul Cunningham sold 1,000 shares on November 3, 2023, at an average price of $340.26, totaling $340,260. Following this transaction, Cunningham holds 98,067 shares valued at approximately $33.37 million. Additionally, CEO Anirudh Devgan sold 5,550 shares on November 5, 2023, for $1.82 million. After this sale, Devgan retains 195,844 shares worth $64.20 million. In total, insiders sold 15,230 shares valued at $5.19 million in the last quarter.
Cadence Design Systems, Inc. specializes in providing software, hardware, services, and reusable integrated circuit (IC) design blocks globally. Its offerings include functional verification services such as emulation and prototyping hardware, with notable products like JasperGold, Xcelium, Palladium, and Protium.
As the market evolves, Cadence Design Systems remains a significant player in the software industry, attracting attention from both investors and analysts alike.
