Bornite Capital Management LP Invests $37.53 Million in Cadence Design Systems, Inc. $CDNS

Key Points

• Bornite Capital Management purchased 100,000 Cadence Design Systems shares worth approximately $37.53 million in the second quarter, making CDNS 4.7% of its portfolio. Institutional investors collectively own 84.85% of the company.
• Analysts remain broadly positive, with 13 Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $405.69.
• Cadence reported quarterly EPS of $2.11, beating estimates by $0.06, while revenue rose 24.2% year over year to $1.58 billion. Despite the results, the stock opened at $313.04, below its 50-day and 200-day moving averages, while insiders sold 7,221 shares worth $2.57 million over the past 90 days.

Bornite Capital Management LP purchased a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 100,000 shares of the software maker's stock, valued at approximately $37,532,000. Cadence Design Systems comprises 4.7% of Bornite Capital Management LP's portfolio, making the stock its 14th biggest position.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Avalon Trust Co acquired a new stake in Cadence Design Systems during the 2nd quarter worth $30,000. Fiduciary Financial Advisors acquired a new position in Cadence Design Systems in the second quarter valued at about $31,000. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Cadence Design Systems in the fourth quarter worth about $28,000. Arlington Trust Co LLC increased its holdings in shares of Cadence Design Systems by 154.3% in the second quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after acquiring an additional 54 shares in the last quarter. Finally, Imprint Wealth LLC bought a new position in shares of Cadence Design Systems during the 3rd quarter valued at about $31,000. Institutional investors own 84.85% of the company's stock.

Analysts Set New Price Targets

CDNS has been the topic of a number of research analyst reports. Morgan Stanley restated an "overweight" rating and set a $400.00 price objective on shares of Cadence Design Systems in a report on Wednesday, July 29th. Weiss Ratings upgraded Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. Citigroup lifted their price target on Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Wall Street Zen upgraded Cadence Design Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. Finally, Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $405.69.

Cadence Design Systems Stock Down 7.6%

Cadence Design Systems stock opened at $313.04 on Wednesday. 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. The company has a fifty day simple moving average of $345.84 and a 200 day simple moving average of $333.94. The company has a market cap of $86.21 billion, a P/E ratio of 62.23, a price-to-earnings-growth ratio of 3.64 and a beta of 1.14.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to analysts' expectations of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The company's revenue for the quarter was up 24.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.65 EPS. 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. Research analysts anticipate that Cadence Design Systems, Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Paul Cunningham sold 2,000 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $323.32, for a total transaction of $646,640.00. Following the sale, the vice president owned 124,586 shares in the company, valued at $40,281,145.52. This represents a 1.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vincentelli Albert Sangiovanni sold 1,250 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $320.88, for a total value of $401,100.00. Following the completion of the sale, the director directly owned 40,794 shares of the company's stock, valued at approximately $13,089,978.72. The trade was a 2.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 7,221 shares of company stock valued at $2,570,606. Corporate insiders own 0.49% of the company's stock.

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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