Morningstar Investment Management Expands Stake in Cadence Design Systems

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

Petros Family Wealth LLC increased its stake by 2.6% during the same period, bringing its total to 1,277 shares valued at $394,000 after acquiring an additional 32 shares. Hemington Wealth Management raised its holdings by 14.0%, now owning 261 shares worth $80,000, also following a purchase of 32 shares. Other firms, such as Legacy Capital Wealth Partners LLC and Empower Advisory Group LLC, have similarly boosted their investments in Cadence, indicating robust institutional confidence in the company.

As of now, institutional investors control 84.85% of Cadence Design Systems’ stock, underscoring the importance of large investors in the company’s financial health.

Market Performance and Analyst Ratings

On Wednesday, shares of Cadence Design Systems opened at $325.75. The stock has experienced a 52-week range with a low of $221.56 and a high of $376.45. The company’s market capitalization stands at $88.76 billion, with a price-to-earnings ratio of 88.04 and a PEG ratio of 4.36. Additional financial metrics reveal a quick ratio of 2.67, a current ratio of 2.82, and a debt-to-equity ratio of 0.49.

Analyst ratings for Cadence Design Systems remain largely positive. On July 29, Wells Fargo & Company raised its price target from $365.00 to $405.00, maintaining an “overweight” rating. Stifel Nicolaus also increased its target from $350.00 to $395.00, rating the stock as a “buy.” Furthermore, BNP Paribas Exane initiated coverage, issuing an “outperform” rating with a price target of $400.00. According to data from MarketBeat.com, Cadence currently holds a consensus rating of “Moderate Buy” with a price target of $368.53.

Insider Trading Activity

In related news, insider activity has seen Director Ita M. Brennan selling 180 shares of Cadence stock on September 10 at an average price of $334.51, resulting in a total value of $60,211.80. After this transaction, Brennan’s ownership decreased by 2.25%, leaving her with 7,830 shares valued at approximately $2,619,213.30.

Additionally, Vice President Paul Cunningham sold 1,000 shares on October 1 for an average price of $348.27, totaling $348,270.00. After this sale, Cunningham holds 99,672 shares valued at around $34,712,767.44, representing a 0.99% decline in ownership. Over the last ninety days, insiders have sold a total of 10,680 shares worth approximately $3,729,852, with corporate insiders currently holding 0.37% of the stock.

Cadence Design Systems, Inc. specializes in software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company provides functional verification services, including emulation and prototyping hardware, with a comprehensive offering that includes platforms like JasperGold and Palladium.

As institutional investment continues to grow, Cadence Design Systems appears well-positioned for future developments in the tech sector.