Tensor Edge Capital LLC Purchases Shares of 100,500 Cadence Design Systems, Inc. $CDNS

Key Points

• Tensor Edge Capital LLC opened a new position in Cadence Design Systems, buying 100,500 shares valued at about $27.9 million. The stake now represents roughly 4.8% of the firm’s portfolio.
• Cadence reported strong quarterly results, including EPS of $1.96 versus the $1.91 consensus and revenue of $1.47 billion, up 18.6% year over year. The company also issued FY2026 guidance of $7.85-$7.95 EPS.
• Analysts remain broadly upbeat on CDNS, with 14 Buy ratings and an average target price of $386.59. However, insiders have been selling shares recently, including VP Paul Cunningham and Director Ita M. Brennan.

Tensor Edge Capital LLC acquired a new position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 100,500 shares of the software maker's stock, valued at approximately $27,926,000. Cadence Design Systems makes up approximately 4.8% of Tensor Edge Capital LLC's portfolio, making the stock its 11th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in CDNS. Vanguard Group Inc. grew its holdings in shares of Cadence Design Systems by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock worth $8,511,888,000 after purchasing an additional 307,753 shares during the last quarter. State Street Corp lifted its holdings in Cadence Design Systems by 1.1% during the 4th quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock valued at $3,939,561,000 after purchasing an additional 135,206 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Cadence Design Systems by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock valued at $2,378,707,000 after purchasing an additional 92,152 shares during the last quarter. Norges Bank acquired a new position in Cadence Design Systems in the fourth quarter valued at about $1,352,922,000. Finally, Van ECK Associates Corp boosted its position in Cadence Design Systems by 11.9% in the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker's stock valued at $1,104,714,000 after buying an additional 376,654 shares in the last quarter. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $373.14 on Friday. The business's 50-day simple moving average is $369.80 and its 200 day simple moving average is $324.78. The stock has a market cap of $102.92 billion, a price-to-earnings ratio of 86.98, a P/E/G ratio of 4.42 and a beta of 1.15. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The firm had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same period in the previous year, the business posted $1.57 EPS. The company's quarterly revenue was up 18.6% compared to the same quarter last year. 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, research analysts anticipate that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Wells Fargo & Company upped their price objective on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 26th. Rosenblatt Securities reiterated a "buy" rating and issued a $360.00 target price on shares of Cadence Design Systems in a research note on Friday, April 24th. Robert W. Baird boosted their target price on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a report on Tuesday, April 28th. KeyCorp increased their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $400.00 price target on shares of Cadence Design Systems in a report on Tuesday, April 28th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average target price of $386.59.

Insider Activity at Cadence Design Systems

In related news, VP Paul Cunningham sold 2,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares of the company's stock, valued at $49,495,126. The trade was a 1.56% decrease in their ownership of the stock. The transaction 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 Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the completion of the transaction, the director owned 8,004 shares in the company, valued at $3,101,149.80. This represents a 2.20% 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. Insiders have sold 178,557 shares of company stock worth $66,925,452 over the last 90 days. 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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