Cadence Design Systems, Inc. $CDNS Shares Acquired by HighTower Advisors LLC

Key Points

• HighTower Advisors increased its Cadence Design Systems stake by 32.6% in the second quarter, bringing its holdings to 75,861 shares valued at approximately $28.5 million. Institutional investors and hedge funds collectively own 84.85% of CDNS.
• Cadence reported quarterly EPS of $2.11, beating estimates of $2.05, while revenue rose 24.2% year over year to $1.58 billion. The company provided FY 2026 EPS guidance of $8.05–$8.15.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and three Holds producing a “Moderate Buy” consensus and a $405.69 price target. However, shares opened at $284.11, well below their 52-week high of $416.69, while insiders have sold 7,041 shares worth about $2.5 million over the past 90 days.

HighTower Advisors LLC increased its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 32.6% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 75,861 shares of the software maker's stock after buying an additional 18,664 shares during the quarter. HighTower Advisors LLC's holdings in Cadence Design Systems were worth $28,472,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in the company. Avalon Trust Co acquired a new stake in shares of Cadence Design Systems during the second quarter worth about $30,000. Fiduciary Financial Advisors purchased a new stake in Cadence Design Systems in the second quarter valued at approximately $31,000. University of Texas Texas AM Investment Management Co. purchased a new position in Cadence Design Systems during the 4th quarter worth approximately $28,000. Arlington Trust Co LLC raised its position in Cadence Design Systems by 154.3% during the 2nd quarter. Arlington Trust Co LLC now owns 89 shares of the software maker's stock worth $33,000 after buying an additional 54 shares during the last quarter. Finally, Imprint Wealth LLC acquired a new stake in Cadence Design Systems during the 3rd quarter valued at approximately $31,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems Stock Down 2.9%

Shares of NASDAQ CDNS opened at $284.11 on Wednesday. The firm has a market cap of $78.24 billion, a price-to-earnings ratio of 56.48, a price-to-earnings-growth ratio of 3.14 and a beta of 1.14. The company's 50-day simple moving average is $338.15 and its 200-day simple moving average is $333.97. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.05 by $0.06. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.65 earnings per share. 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 analysts predict that Cadence Design Systems, Inc. will post 6.4 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently commented on CDNS shares. Citigroup upped their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Weiss Ratings raised shares of Cadence Design Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 30th. Needham & Company LLC restated a "buy" rating and set a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Benchmark reaffirmed a "buy" rating on shares of Cadence Design Systems in a report on Tuesday, July 28th. Finally, Oppenheimer reiterated a "market perform" rating and set a $300.00 price target on shares of Cadence Design Systems in a research report on Tuesday, July 28th. Thirteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $405.69.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Scannell sold 280 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total value of $94,920.00. Following the completion of the transaction, the vice president owned 31,720 shares of the company's stock, valued at $10,753,080. This trade represents a 0.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of Cadence Design Systems stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $381.34, for a total value of $576,204.74. Following the completion of the transaction, the director owned 23,264 shares of the company's stock, valued at approximately $8,871,493.76. This trade represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 7,041 shares of company stock valued at $2,500,865. 0.49% of the stock is owned by insiders.

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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