Firetrail Investments PTY Ltd. Buys New Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Firetrail Investments PTY Ltd. initiated a new position in Cadence Design Systems during the fourth quarter, buying 11,525 shares worth about $3.62 million. The stake accounts for roughly 1.2% of Firetrail’s portfolio.
• Cadence Design Systems reported better-than-expected quarterly results, with EPS of $1.96 versus estimates of $1.91 and revenue of $1.47 billion versus $1.46 billion expected. Revenue rose 18.6% year over year, and the company issued FY2026 and Q2 2026 guidance above current-year expectations.
• Analysts remain broadly positive on CDNS, with 14 Buy ratings and 3 Hold ratings and a consensus price target of $380.59. Recent reports from firms like Citigroup and KeyCorp also lifted their targets on the stock.

Firetrail Investments PTY Ltd. bought a new stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 11,525 shares of the software maker's stock, valued at approximately $3,620,000. Cadence Design Systems makes up about 1.2% of Firetrail Investments PTY Ltd.'s portfolio, making the stock its 29th largest holding.

Other large investors have also made changes to their positions in the company. Peterson Wealth Services boosted its stake in Cadence Design Systems by 1,501.3% in the 3rd quarter. Peterson Wealth Services now owns 187,115 shares of the software maker's stock worth $65,726,000 after purchasing an additional 175,430 shares in the last quarter. Thrivent Financial for Lutherans grew its position in Cadence Design Systems by 301.9% during the 3rd quarter. Thrivent Financial for Lutherans now owns 49,999 shares of the software maker's stock worth $17,563,000 after purchasing an additional 37,558 shares during the last quarter. DDD Partners LLC increased its stake in Cadence Design Systems by 27.4% during the 4th quarter. DDD Partners LLC now owns 41,968 shares of the software maker's stock valued at $13,118,000 after purchasing an additional 9,024 shares in the last quarter. Sun Financial Inc acquired a new position in Cadence Design Systems during the 4th quarter valued at approximately $1,225,000. Finally, Rakuten Investment Management Inc. purchased a new position in shares of Cadence Design Systems in the third quarter worth $5,806,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems Stock Up 1.6%

CDNS stock opened at $362.70 on Friday. The company has a market capitalization of $100.04 billion, a P/E ratio of 84.55, a price-to-earnings-growth ratio of 4.30 and a beta of 1.13. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $376.45. The firm's fifty day simple moving average is $300.45 and its 200-day simple moving average is $309.70. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm's quarterly revenue was up 18.6% on a year-over-year basis. During the same period in the previous year, the firm posted $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, equities research analysts forecast that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

CDNS has been the subject of several research reports. Citigroup boosted their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. KeyCorp raised their target price on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Morgan Stanley lowered their price target on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Piper Sandler boosted their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a "neutral" rating in a research note on Tuesday, April 28th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Cadence Design Systems currently has an average rating of "Moderate Buy" and a consensus price target of $380.59.

Insider Buying and Selling

In related news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $297.78, for a total transaction of $297,780.00. Following the completion of the transaction, the vice president directly owned 94,137 shares in the company, valued at approximately $28,032,115.86. This trade represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $295.03, for a total value of $53,105.40. Following the completion of the transaction, the director directly owned 7,470 shares of the company's stock, valued at $2,203,874.10. The trade was a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 40,180 shares of company stock worth $12,924,790. Corporate insiders own 0.49% of the company's stock.

Cadence Design Systems Profile

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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