Swiss National Bank Expands Stake in Cadence Design Systems

The Swiss National Bank has increased its investment in Cadence Design Systems, Inc. (NASDAQ: CDNS), acquiring an additional 56,900 shares during the second quarter of 2023. This move raises its total ownership by 7.4%, bringing its stake to approximately 830,400 shares, valued at around $255.9 million as reported in its latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC).

This development comes as several other institutional investors also adjust their positions in Cadence. Notably, Nuveen LLC entered a new position during the first quarter, investing approximately $289.7 million. Meanwhile, Assenagon Asset Management S.A. dramatically increased its stake by 466.4% in the second quarter, now owning 786,849 shares valued at $242.5 million. Other significant transactions include an increase in holdings by Vanguard Group Inc., which now possesses 26,339,142 shares worth about $6.7 billion and a 7.1% increase by UBS AM, bringing its total to 4,729,026 shares valued at approximately $1.2 billion.

The stock of Cadence Design Systems has experienced a slight decline of 0.5%, opening at $300.58 on the latest trading day. It has a market capitalization of $81.8 billion, with a price-to-earnings (P/E) ratio of 77.47. The company also reports a debt-to-equity ratio of 0.48 and a current ratio of 3.05. Cadence’s fifty-two week range shows a low of $221.56 and a high of $376.45.

Insider Transactions and Analyst Ratings

In related news, Paul Cunningham, Vice President of Cadence, sold 1,000 shares on September 2, 2023, at an average price of $343.95, resulting in a total transaction value of $343,950. Following this transaction, Cunningham holds 102,499 shares valued at about $35.3 million. Similarly, John M. Wall, Chief Financial Officer, sold 7,500 shares on September 30, 2023, at an average price of $349.16, totaling $2.6 million. His remaining shares are now valued at $24.7 million.

Analysts have also recently updated their outlook on Cadence. Oppenheimer raised its price target from $200.00 to $225.00, designating the stock as “underperform.” Conversely, Piper Sandler increased its price target to $355.00, maintaining a “neutral” rating. Rosenblatt Securities adjusted its target to $335.00 while affirming a “neutral” rating. Additionally, Stifel Nicolaus raised its target from $350.00 to $395.00, giving the stock a “buy” rating. Overall, fourteen analysts have assigned a “buy” rating, three have given a “hold,” and one has issued a “sell,” leading to an average rating of “Moderate Buy” with a consensus target price of $376.00, according to data from MarketBeat.

Company Overview

Cadence Design Systems, Inc. provides comprehensive software, hardware, and services for integrated circuit (IC) design. Its offerings include functional verification services such as JasperGold, a formal verification platform, and Palladium, an enterprise emulation platform. The company continues to expand its influence in the semiconductor industry, leveraging advancements in technology to enhance product efficiency and reliability.

As institutional interest continues to grow, Cadence Design Systems remains a focal point for investors and analysts alike, reflecting the company’s robust position in the technology sector.