Morningstar Expands Portfolio with Cadence Design Systems Shares

Morningstar Investment Management LLC has acquired a new stake in Cadence Design Systems, Inc. (NASDAQ: CDNS), enhancing its portfolio during the second quarter of 2023. The institutional investor purchased 844 shares, valued at approximately $260,000, according to HoldingsChannel.com. This acquisition highlights a growing interest in the software company, with several institutional investors recently adjusting their holdings in Cadence.

Petros Family Wealth LLC increased its investment in Cadence Design Systems by 2.6%, acquiring an additional 32 shares and bringing its total to 1,277 shares, valued at $394,000. Hemington Wealth Management also boosted its holdings by 14.0%, owning 261 shares worth $80,000 after a similar addition of 32 shares. Legacy Capital Wealth Partners LLC and Empower Advisory Group LLC made comparable adjustments, with increases of 2.8% and 4.1%, respectively. Notably, Gamco Investors INC. ET AL raised its stake by 0.3%, now owning 13,337 shares valued at $3.39 million. Overall, institutional investors hold 84.85% of Cadence Design Systems’ stock.

Market Performance and Analyst Ratings

On the trading front, shares of Cadence Design Systems opened at $325.75 on Wednesday. The stock has seen significant fluctuations, with a 52-week low of $221.56 and a high of $376.45. The company boasts a market capitalization of $88.76 billion, a price-to-earnings ratio of 88.04, and a PEG ratio of 4.36. Additionally, it maintains a quick ratio of 2.67 and a debt-to-equity ratio of 0.49. The 50-day moving average stands at $350.33, while the 200-day moving average is at $317.89.

Analysts have recently provided updated evaluations of Cadence Design Systems. Wells Fargo & Company raised its price target from $365.00 to $405.00, assigning an “overweight” rating. Stifel Nicolaus followed suit, increasing its price target from $350.00 to $395.00 and giving a “buy” rating. Meanwhile, BNP Paribas Exane initiated coverage with an “outperform” rating and a target price of $400.00. In contrast, Rosenblatt Securities maintained a “neutral” rating with a target price of $300.00. Overall, thirteen analysts have rated the stock as a Buy, three as Hold, and one as Sell, resulting in a consensus rating of “Moderate Buy” with a price target of $368.53, according to MarketBeat.com.

Insider Transactions and Company Overview

In related news, Cadence Design Systems has seen insider activity, specifically involving Director Ita M. Brennan, who sold 180 shares on September 10. The transaction, completed at an average price of $334.51, totaled $60,211.80. Following this sale, Brennan holds 7,830 shares valued at approximately $2.62 million, marking a 2.25% decrease in ownership.

Additionally, Vice President Paul Cunningham sold 1,000 shares on October 1, valued at $348.27 per share, contributing a total of $348,270.00 to his portfolio. Post-sale, he retains 99,672 shares worth about $34.71 million, indicating a 0.99% decrease in ownership. Over the past ninety days, insiders have sold 10,680 shares worth approximately $3.73 million, with corporate insiders owning 0.37% of the company stock.

Cadence Design Systems, Inc. specializes in providing software, hardware, and services for integrated circuit (IC) design worldwide. The company offers functional verification services, including emulation and prototyping hardware, utilizing platforms such as JasperGold, Xcelium, Palladium, and Protium.

As Cadence Design Systems continues to evolve within the technology sector, the actions of institutional investors and analysts highlight a robust interest in its potential growth and market performance.