Krilogy Financial LLC Makes New $8 Million Investment in Cadence Design Systems, Inc. $CDNS

Key Points

• Krilogy Financial invested approximately $8 million in Cadence Design Systems during the third quarter, purchasing 24,240 shares. Institutional investors collectively own 84.85% of CDNS.
• Cadence reported strong quarterly performance, including $1.58 billion in revenue, a 24.2% year-over-year increase, and EPS of $2.11 versus the $2.05 consensus estimate. Analysts maintain a “Moderate Buy” consensus with an average price target of $404.14.
• CDNS shares traded down 4.1% amid broader weakness in semiconductor and electronic-design-automation stocks. The stock’s premium valuation and recent insider selling may continue to weigh on investor sentiment despite strong operating results.

Krilogy Financial LLC bought a new position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 24,240 shares of the software maker's stock, valued at approximately $8,004,000.

Several other institutional investors also recently modified their holdings of the stock. Van ECK Associates Corp raised its stake in shares of Cadence Design Systems by 21.8% during the second quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock worth $1,835,227,000 after acquiring an additional 874,392 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Cadence Design Systems by 1.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock valued at $1,270,704,000 after purchasing an additional 48,937 shares during the period. J. Stern & Co. LLP grew its holdings in Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock worth $923,129,000 after acquiring an additional 2,924,470 shares during the last quarter. Amundi raised its stake in shares of Cadence Design Systems by 3.8% during the first quarter. Amundi now owns 2,060,334 shares of the software maker's stock valued at $572,488,000 after acquiring an additional 75,492 shares during the last quarter. Finally, Legal & General Group Plc bought a new position in Cadence Design Systems in the 2nd quarter worth $702,615,000. 84.85% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $277.12, for a total value of $554,240.00. Following the sale, the vice president owned 121,793 shares in the company, valued at $33,751,276.16. This represents a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Albert Sangiovanni-Vincentelli sold 1,250 shares of the company's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $350.07, for a total transaction of $437,587.50. Following the completion of the transaction, the director owned 39,544 shares of the company's stock, valued at approximately $13,843,168.08. This trade represents a 3.06% 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. In the last 90 days, insiders have sold 6,960 shares of company stock valued at $2,185,879. 0.49% of the stock is currently owned by insiders.

Cadence Design Systems News Summary

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Erste Group Bank raised its FY2026 EPS estimate slightly to $6.40 from $6.39, broadly in line with the $6.41 consensus forecast. Erste Group Bank estimate update
• Positive Sentiment: Cadence’s latest quarterly results remained strong, with revenue of approximately $1.584 billion, record backlog of $8.1 billion and increased full-year 2026 guidance. The company is also scheduled to report third-quarter results on October 26. Cadence stock rotation analysis
• Neutral Sentiment: Semiconductor equipment and chip-design shares broadly weakened after a strong AI-driven run, with peers including Applied Materials, Lam Research and KLA also declining. This indicates sector-wide profit-taking rather than a Cadence-specific operational shock. Semiconductor equipment stocks slide
• Negative Sentiment: Cadence trades at a premium valuation, making CDNS more vulnerable to risk reduction in AI- and semiconductor-exposed software names. Synopsys also traded lower, reinforcing the broader electronic-design-automation selloff. Cadence valuation and sector analysis
• Negative Sentiment: One analysis argues that Cadence’s customers may be gaining negotiating leverage, potentially pressuring pricing, margins or future growth. In addition, reported insider activity shows selling with no purchases over the past six months, which may weigh on sentiment. Cadence customer leverage analysis

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CDNS shares. Robert W. Baird boosted their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. BNP Paribas Exane lifted their price objective on Cadence Design Systems from $400.00 to $450.00 and gave the stock an "outperform" rating in a report on Thursday, June 18th. Rothschild & Co Redburn raised their target price on Cadence Design Systems from $385.00 to $395.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Finally, The Goldman Sachs Group lifted their price objective on shares of Cadence Design Systems from $410.00 to $470.00 and gave the company a "buy" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $404.14.

Cadence Design Systems Trading Down 4.1%

CDNS stock opened at $334.20 on Wednesday. Cadence Design Systems, Inc. has a 12 month low of $262.75 and a 12 month high of $416.69. The company has a market capitalization of $92.04 billion, a PE ratio of 66.44, a P/E/G ratio of 3.73 and a beta of 1.13. The firm's 50-day moving average is $319.68 and its 200 day moving average is $338.26. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.74 and a quick ratio of 1.53.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly 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. 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 quarterly revenue was up 24.2% compared to the same quarter last year. During the same quarter in the previous year, the business 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. On average, research analysts anticipate that Cadence Design Systems, Inc. will post 6.41 EPS for the current year.

About Cadence Design Systems

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

The company's offerings include digital and custom/analog integrated-circuit design tools, functional verification and emulation platforms, semiconductor intellectual property, and system analysis solutions.

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