Bank of America Corp DE Buys Shares of 1,093,288 Cadence Design Systems, Inc. $CDNS

Key Points

• Bank of America acquired 1.09 million Cadence Design Systems shares worth approximately $410.3 million, giving it a 0.40% stake. Institutional investors collectively own 84.85% of CDNS.
• Cadence reported quarterly earnings of $2.11 per share, exceeding estimates, while revenue rose 24.2% year over year to $1.58 billion. The company issued fiscal 2026 EPS guidance of $8.05–$8.15.
• CDNS shares opened at $273.96, near their one-year low and below both 50- and 200-day moving averages. Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $403.88.

Bank of America Corp DE bought a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 1,093,288 shares of the software maker's stock, valued at approximately $410,333,000. Bank of America Corp DE owned about 0.40% of Cadence Design Systems at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in CDNS. Avalon Trust Co bought a new position in Cadence Design Systems during the second quarter valued at about $30,000. Fiduciary Financial Advisors bought a new stake in shares of Cadence Design Systems during the 2nd quarter worth about $31,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Cadence Design Systems during the 4th quarter valued at about $28,000. Arlington Trust Co LLC increased its holdings in shares of Cadence Design Systems by 154.3% during the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock valued at $33,000 after acquiring an additional 54 shares during the last quarter. Finally, Whipplewood Advisors LLC raised 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 acquiring an additional 84 shares in the last quarter. 84.85% of the stock is owned by hedge funds and other institutional investors.

Cadence Design Systems Stock Down 1.8%

CDNS opened at $273.96 on Wednesday. The business has a 50 day moving average of $328.97 and a 200-day moving average of $333.60. The stock has a market capitalization of $75.45 billion, a price-to-earnings ratio of 54.47, a P/E/G ratio of 2.99 and a beta of 1.14. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, beating the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.58 billion. During the same period in the prior year, the company earned $1.65 EPS. The business's quarterly revenue 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. As a group, sell-side analysts anticipate that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current year.

Insider Transactions at Cadence Design Systems

In related news, Director Ita Brennan sold 180 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $285.51, for a total transaction of $51,391.80. Following the transaction, the director directly owned 7,824 shares in the company, valued at $2,233,830.24. The trade was a 2.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $323.32, for a total value of $646,640.00. Following the completion of the transaction, the vice president directly owned 124,586 shares of the company's stock, valued at approximately $40,281,145.52. This trade represents a 1.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,710 shares of company stock valued at $1,194,052 in the last ninety days. 0.49% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CDNS. Oppenheimer restated a "market perform" rating and issued a $300.00 target price on shares of Cadence Design Systems in a report on Tuesday, July 28th. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Bank of America boosted their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a report on Wednesday, May 27th. Finally, Wall Street Zen lowered shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $403.88.

About Cadence Design Systems

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware and semiconductor intellectual property (IP). Its products help engineers design, verify and analyze integrated circuits, printed circuit boards and complete electronic systems.

The company offers solutions spanning digital and custom IC design, functional verification, digital and analog simulation, emulation and prototyping, system analysis, and 3D computational fluid dynamics.

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