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Cadence Design Systems Inc (CDNS): Glenview Capital Raises Stake in a Company with Good Prospects

Larry RobbinsGlenview Capital has boosted its exposure to Cadence Design Systems Inc (NASDAQ:CDNS), as disclosed in a new filing with the Securities and Exchange Commission. Glenview currently owns 17.65 million shares of the company, the passive stake amassing slightly over 6% of the company. In its latest 13F filing, the fund reported ownership of 11.92 million shares of Cadence Design Systems.


Mr. Robbins is a notorious figure in the investment circles, which is why his moves are followed closely. Recently, Glenview has raised its position in VCA Inc (NASDAQ:WOOF) to 12.8 million shares, equal to 15% of the company’s common stock. Previously, Mr. Robbins pitched VCA during his speech at the Robin Hood Conference in New York. The manager of Glenview has also attended the Sohn Canada Conference at the end of October, where he recommended investors to buy shares of Thermo Fisher Scientific Inc. (NYSE:TMO), Danaher Corporation (NYSE:DHR), Endo International plc – Ordinary Shares (NASDAQ:ENDP), and Actavis plc (NYSE:ACT). The stock of VCA gained around 20% since Glenview raised its position. Another stock that Mr. Robbins is bullish on is Flextronics International Ltd. (NASDAQ:FLEX), in which Glenview last reported buying 5.0 million shares, raising the position to 75.13 million shares, representing 12.77% of the company, while the stock gained around 11% since then.

Glenview added Cadence Design Systems Inc (NASDAQ:CDNS) to its equity portfolio during the second quarter of 2014. The stock of the mid-cap company, that specializes in development of electronic design automation, software, hardware, silicon intellectual property, advanced by over 32% year-to-date. Around a week before Glenview raised its stake, Cadence reported its financial results for the third quarter, posting an increase in revenue to $400 million, from $367 million a year ago and a net income of $0.26 per share, slightly down from $0.21 per share a year ago. In this way, amid strong financial results, which also beat the estimates, two analysts reiterated their ‘Buy’ and ‘Outperform’ ratings. DA Davidson, however, lowered its price target to $20 from $21 with ‘Buy’ rating and RBC Capital raised its price target to $20 from $19, maintaining the ‘Outperform’ rating. The consensus recommendation for the stock is ‘Buy’ with the mean price target amounting to $20.00.

Among other shareholders of Cadence Design Systems Inc (NASDAQ:CDNS) is Eric W. Mandelblatt’s Soroban Capital Partners, which holds 13.08 million shares as of the end of June and Ricky Sandler’ Eminence Capital with 8.30 million shares.

To sum up, Glenview Capital raised its stake in a company with a steady growth and good prospects, which is also confirmed by increased financial estimates and the bullish sentiment of other investors. Often tracking big investors, such as Mr. Robbins, can provide retail investors with some insights regarding to new investment opportunities and Cadence Design Systems could fall under this category.

Disclosure: none

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