Buckley Wealth Management LLC has recently acquired a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS), according to a Form 13F filing with the Securities and Exchange Commission. The fund purchased 977 shares of the software maker’s stock during the second quarter, with an approximate value of $229,000.
Cadence Design Systems is a prominent name in the software industry and operates within the NASDAQ exchange under the ticker symbol CDNS. The company reported its quarterly earnings results on Monday, July 24th. During this period, Cadence Design Systems generated an impressive EPS (earnings per share) of $1.22, surpassing market expectations by $0.04.
In addition to exceeding estimates for earnings per share, Cadence Design Systems also demonstrated solid financial performance across other key metrics. The company achieved a return on equity of 33.79% and a net margin of 23.41%, indicating robust profitability and effective utilization of capital resources.
Furthermore, Cadence Design Systems reported quarterly revenue totaling $977 million. This figure exceeded analyst predictions, as estimates stood at $975.99 million. Comparatively, in the same period the previous year, the company had an EPS of $0.85.
The recent financial results indicate positive growth for Cadence Design Systems. On a year-over-year basis, the company experienced a revenue increase of 13.9%. These strong figures reflect successful strategic execution and effective management decisions within the organization.
Market analysts are optimistic about Cadence Design Systems’ future prospects and predict that it will achieve earnings per share of 4.1 for the current fiscal year.
In conclusion, Buckley Wealth Management’s recent acquisition of shares in Cadence Design Systems highlights investor confidence in the software maker’s potential for growth and continued success within its industry. With promising financial performance and favorable market projections for the future, it is clear that Cadence Design Systems is a company worth watching closely.
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Neutral
Updated on: 30/09/2023
Financial Health
Weak
Debt to equity ratio: Strong Sell
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Sell
DCF: Strong Buy
ROE: Neutral
Cadence Design Systems: Institutional Interest, Market Performance, and Analyst Ratings
September 19, 2023
Cadence Design Systems: Ownership Changes and Market Performance
In recent months, several institutional investors and hedge funds have made adjustments to their stakes in Cadence Design Systems (NASDAQ:CDNS), a leading software maker. Advisory Resource Group acquired a new stake in the company during the second quarter, valued at $657,000. Atlantic Union Bankshares Corp also increased its stake by 237.0%, now owning 5,288 shares worth $1,240,000. Capital Investment Advisors LLC and Janiczek Wealth Management LLC also raised their positions in the company by 17.5% and 4.9% respectively.
Furthermore, First Affirmative Financial Network entered the market as a new investor with a stake valued at approximately $204,000. These moves indicate that there is substantial interest from institutional investors and hedge funds in Cadence Design Systems.
Currently, 83.95% of the stock is owned by institutional investors and hedge funds. This high level of ownership suggests that professional investors see potential value in the company’s future growth prospects.
On September 19, 2023, NASDAQ listed CDNS opened at $236.83. The stock has been performing steadily over the past few months with a 50-day moving average of $234.76 and a two-hundred day moving average of $221.95.
Cadence Design Systems has a market capitalization of $64.37 billion with a price-to-earnings (PE) ratio of 72.65 and a price-to-earnings-growth (PEG) ratio of 3.12—both metrics indicating potentially high valuations relative to earnings growth expectations.
The company’s beta stands at 1.03, suggesting that it may be less volatile compared to the overall market.
Over the past year, Cadence Design Systems’ stock has ranged from a low of $138.76 to a high of $248.16. This wide range demonstrates the stock’s potential for significant price fluctuations.
Regarding its financial health, Cadence Design Systems has a debt-to-equity ratio of 0.22 and a current ratio of 1.37, indicating that it has a reasonable level of debt and sufficient short-term assets to cover its liabilities.
In recent news related to insider trading, Director Vincentelli Albert Sangiovanni sold 8,800 shares of the company’s stock on August 8th at an average price of $230.23 per share, totaling $2,026,024.00 in value. Following this transaction, Sangiovanni now holds approximately 70,683 shares with an estimated value of $16,273,347.09.
Director James D. Plummer also sold 4,406 shares on July 27th at an average price of $238.54 per share, amounting to a total value of $1,051,007.24. Post-transaction, Plummer holds around 25,335 shares valued at approximately $6,043410.90.
These sales were disclosed in filings with the Securities and Exchange Commission (SEC). Insiders’ selling activity over the last quarter amounted to approximately 70,511 shares valued at $16,268306. Such actions indicate that insiders hold considerable ownership stakes in the company.
Several equity research analysts have weighed in on Cadence Design Systems’ prospects recently as well.
Robert W. Baird increased its target price from $253.00 to $257.00 on July 25th.
Rosenblatt Securities reaffirmed their “buy” rating with a price objective of $250 per share on August 25th.
Needham & Company LLC also reiterated its “buy” rating and maintained a target price of $235.
KeyCorp raised their price target from $270 to $290, rating the stock “overweight” on September 14th.
Lastly, StockNews.com upgraded Cadence Design Systems from a “hold” rating to a “buy” rating on September 13th.
Overall, based on data from Bloomberg.com, Cadence Design Systems currently has an average rating of “Buy” and an average price target of $257.44 among the ten analysts who cover the stock.
In conclusion, the recent changes in ownership by institutional investors and hedge funds in Cadence Design Systems, along with its steady market performance and positive analyst ratings, suggest that there is growing interest and optimism surrounding the future prospects of this software maker. However, investors should note the potential volatility associated with the stock’s wide price range over the past year.
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