Algebris UK Ltd. Purchases New Position in Cadence Design Systems, Inc. $CDNS

Key Points

• Algebris UK Ltd. initiated a roughly $1.23 million position in Cadence Design Systems during the second quarter, while institutional investors collectively own 84.85% of the company.
• Cadence reported quarterly EPS of $2.11, beating estimates by $0.06, as revenue rose 24.2% year over year to $1.58 billion. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $405.69 versus the stock’s reported $314.98 price. Insiders, however, sold $54.9 million of shares in the latest quarter.

Algebris UK Ltd. purchased a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 3,280 shares of the software maker's stock, valued at approximately $1,227,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in CDNS. Whipplewood Advisors LLC increased its stake in shares of Cadence Design Systems by 933.3% in the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker's stock valued at $26,000 after purchasing an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. grew its holdings in Cadence Design Systems by 860.0% in the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker's stock valued at $27,000 after purchasing an additional 86 shares during the period. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $28,000. Swiss RE Ltd. acquired a new position in shares of Cadence Design Systems during the 4th quarter worth approximately $29,000. Finally, Avalon Trust Co purchased a new position in shares of Cadence Design Systems during the 2nd quarter valued at approximately $30,000. Institutional investors and hedge funds own 84.85% of the company's stock.

Insider Activity

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of Cadence Design Systems stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $323.32, for a total transaction of $646,640.00. Following the transaction, the vice president directly owned 124,586 shares of the company's stock, valued at $40,281,145.52. The trade was a 1.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the completion of the transaction, the director owned 8,004 shares in the company, valued at $3,101,149.80. The trade was a 2.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 141,486 shares of company stock valued at $54,908,817 in the last quarter. Insiders own 0.49% of the company's stock.

Cadence Design Systems Price Performance

NASDAQ:CDNS opened at $314.98 on Thursday. Cadence Design Systems, Inc. has a one year low of $262.75 and a one year high of $416.69. The stock has a market cap of $86.74 billion, a PE ratio of 62.62, a P/E/G ratio of 3.40 and a beta of 1.15. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 1.74. The stock has a 50 day moving average price of $356.42 and a 200 day moving average price of $331.22.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the company posted $1.65 earnings per share. The firm's revenue for the quarter was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Equities research analysts expect that Cadence Design Systems, Inc. will post 6.4 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on CDNS shares. Oppenheimer reaffirmed a "market perform" rating and set a $300.00 price objective on shares of Cadence Design Systems in a report on Tuesday, July 28th. Morgan Stanley restated an "overweight" rating and set a $400.00 price target on shares of Cadence Design Systems in a research report on Wednesday, July 29th. Rosenblatt Securities raised their price target on shares of Cadence Design Systems from $410.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Weiss Ratings upgraded Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $400.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Thirteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and a consensus price target of $405.69.

About Cadence Design Systems

Cadence Design Systems, Inc NASDAQ: CDNS is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company's offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.

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