Exploring Radware Ltd. (RDWR) Investor Profile: Who’s Buying and Why?

You're looking at Radware Ltd. (RDWR) and asking the right question: why are some of the biggest institutional players adding shares while others are trimming their positions? Honestly, the picture is mixed, but the core driver is a bet on their high-growth cybersecurity pivot, specifically in the cloud. We saw this push reflected in the Q3 2025 results, where Cloud Annual Recurring Revenue (ARR) accelerated to a strong $89 million, a 24% year-over-year jump, even as overall revenue growth was a more modest 8% to $75.3 million. That split tells the story. For every Legal & General Group Plc removing 395,594 shares, you have a firm like Artisan Partners Limited Partnership adding over 431,000 shares, plus BlackRock, Inc. increasing its stake to 1,550,375 shares, signaling a clear conviction in the long-term shift. The real near-term opportunity, and the 'why' behind the recent buying, is the company's new LLM Firewall, an AI-based solution for Generative AI applications, which is defintely a forward-looking move in a critical market. So, who's buying? The investors who believe the $0.29 to $0.30 non-GAAP EPS guidance for Q4 2025 is just the start of a new growth cycle fueled by AI and cloud security.

Who Invests in Radware Ltd. (RDWR) and Why?

If you are looking at Radware Ltd. (RDWR), you are looking at a company in a critical, high-growth sector: cybersecurity. The investor profile for Radware is dominated by large, strategic institutional money, which signals a long-term belief in the company's pivot to cloud-based security and its AI-driven innovation. This isn't a stock for dividend seekers-it's a pure growth play.

The core takeaway is that institutional investors are betting on the company's accelerating Cloud Annual Recurring Revenue (ARR) growth, which hit $89 million in Q3 2025, representing a strong 24% year-over-year increase. That's the number that matters most right now.

Key Investor Types and the Ownership Mix

The ownership structure of Radware Ltd. is a classic mix for a mid-cap technology company, but with a clear dominance from institutional players. These are the mutual funds, pension funds, and asset managers who hold the vast majority of the company's float (the shares available for public trading). As of late 2025, approximately 33.10% of the company's stock is held by Institutional Investors, with a further 5.98% held by company Insiders. The remainder is held by public companies and individual investors (retail).

For context, the top institutional holders wield significant influence. You see names like Senvest Management LLC, which holds a substantial 9.48% stake, and Artisan Partners Limited Partnership with 7.33%. Even a firm like BlackRock, Inc. holds a notable position, owning 3.63% of the shares. When you see these large, sophisticated players holding significant, multi-year positions, it tells you they view the company as a strategic asset in the cybersecurity landscape.

Investment Motivations: Why the Big Money is Buying

The motivation for investing in Radware is straightforward: growth and market positioning. Investors are attracted to the company's transition from a traditional hardware-centric model to a high-margin, recurring revenue cloud security platform. This shift is clearly paying off in the numbers.

Here's the quick math on the growth story:

• Cloud ARR is accelerating, reaching $89 million in Q3 2025.
• Q3 2025 revenue was $75.3 million, an 8% year-over-year increase.
• The company's non-GAAP diluted EPS for Q3 2025 was $0.28.

Plus, Radware is a leader in a niche but vital area: application security and DDoS mitigation (Distributed Denial of Service). Their investment in AI-powered innovation is key, positioning them to capitalize on the increasing complexity of cyber threats. The company's strong financial health-holding approximately $454.6 million in cash and equivalents as of September 30, 2025, and having more cash than debt-provides a solid foundation for continued R&D and strategic expansion. You're buying a company with a strong balance sheet that is reinvesting for future growth, not one that is paying out income.

For a deeper dive into the strategic direction, you should review the Mission Statement, Vision, & Core Values of Radware Ltd. (RDWR).

Investment Strategies: Focus on Growth and Transition

Given that Radware Ltd. does not pay a dividend, the primary strategy for nearly all investors is a growth strategy. This is not a stock for an income-focused portfolio. The institutional activity points to three main strategies:

• Long-Term Growth Holding: Major firms are holding shares based on the multi-year thesis that the cloud security platform will continue to capture market share and expand margins. They are looking past the current high P/E ratio, which was around 58.5 in late 2025, because they expect earnings to grow into that valuation.
• Growth at a Reasonable Price (GARP): Some investors see the forward P/E ratio of approximately 23.1 as attractive when compared to the industry median of 40.9, suggesting the stock might be undervalued relative to its growth peers, especially considering its strong gross profit margins.
• Event-Driven/Activist Investing: The presence of large, concentrated holders like Senvest Management, who have been active in buying and selling, indicates a focus on corporate events, strategic changes, and operational improvements to unlock the company's underlying value. These investors are actively pushing for the cloud transition to be executed quickly and profitably.

What this estimate hides is the risk associated with the transition: if onboarding new cloud customers takes 14+ days, or if the EMEA region's revenue decline (down 10% year-over-year in Q3 2025) isn't reversed, the growth story gets complicated. The focus for any investor here is watching the Cloud ARR metric and the execution of the AI-driven strategy. It's defintely a growth-first mentality.

Institutional Ownership and Major Shareholders of Radware Ltd. (RDWR)

If you're looking at Radware Ltd. (RDWR), the first thing to understand is that it's largely an institutional story. The big money-pension funds, mutual funds, and hedge funds-holds the majority of the stock, which means their trading activity dictates much of the near-term price movement and long-term strategic pressure.

As of late 2025, institutional investors own a significant chunk, controlling between 73.12% and 77.14% of Radware's stock. This high percentage is defintely a double-edged sword: it provides a stable, professional investor base, but it also means that a mass exit by just a few large holders can cause a sharp drop. Here's the quick math: with a market capitalization around $994.60 million, over three-quarters of that value is controlled by these firms. You need to know who they are.

The Heavy Hitters: Top Institutional Investors in RDWR

The institutional investor list for Radware is a mix of aggressive hedge funds and long-only asset managers, each with a different investment thesis. The largest single holder is often a hedge fund, which can be more active in pushing for corporate change (Schedule 13D filers) versus a passive mutual fund (Schedule 13G filers).

The table below shows the top institutional owners of Radware Ltd. as of the most recent filings for the 2025 fiscal year, giving you a clear picture of who sits at the top of the shareholder registry.

What this table hides is the diverse investment styles. Senvest Management, LLC, for example, has Radware as one of its largest positions, suggesting a high-conviction bet on the company's turnaround or growth story. BlackRock, Inc. is also a significant holder with 1,550,375 shares, which is typical as they are a major index fund manager, meaning their position is often less about a specific stock pick and more about tracking the overall market.

Recent Shifts: Who's Buying and Who's Selling

In the third quarter of 2025, we saw a clear divergence in institutional sentiment, which is a key signal. Overall, 57 institutional investors added shares, but 62 decreased their positions, showing a net selling trend in the number of positions, though the total shares bought/sold is the real metric.

The buying activity suggests conviction in Radware's strategic pivot toward high-growth areas, particularly with the recent announcement of their LLM Firewall, an AI-based security solution.

• Artisan Partners Limited Partnership was a major buyer, adding 431,572 shares, an increase of 16.0% in Q3 2025. This is a strong vote of confidence.
• Renaissance Technologies LLC, a quantitative hedge fund, also boosted its stake by 145,500 shares (+9.0%), indicating its models see a positive momentum signal.
• Even a giant like BlackRock, Inc. increased its position by 56,809 shares (+3.804%).

On the flip side, some major holders took profits or rebalanced their portfolios after Radware's strong Q3 2025 earnings, which reported non-GAAP diluted EPS of $0.28.

• Legal & General Group Plc was a notable seller, removing 395,594 shares (-14.0%).
• Penserra Capital Management LLC also trimmed its position, selling 341,604 shares (-11.8%).

The Impact of Institutional Ownership on Stock and Strategy

These large institutions are more than just passive shareholders; they are a critical force in Radware's stock price and corporate direction. When you see a high institutional ownership percentage, it means the stock is heavily scrutinized and its valuation is likely tied to the company's ability to execute on its long-term strategy.

Their collective buying power creates support for the stock, but their selling can trigger a cascade. For example, the simultaneous selling by Legal & General Group Plc and Penserra Capital Management LLC in Q3 2025 could put downward pressure on the stock, even as Radware reported a strong 24% year-over-year acceleration in Cloud Annual Recurring Revenue (ARR) to $89 million. This is why you see the stock price trading down even after a beat on earnings.

More importantly, these investors influence strategy. Their focus on Cloud ARR growth and the push for new, high-margin products like the LLM Firewall is what drives management's capital allocation decisions. They are essentially telling management: invest in AI-driven cybersecurity to grow the cloud business, or we'll sell. If you want to dive deeper into how this strategy affects the balance sheet, you should check out Breaking Down Radware Ltd. (RDWR) Financial Health: Key Insights for Investors.

Next step for you: look at the Q4 2025 guidance of $0.290-$0.300 EPS and see if the institutional buying trend accelerates. Finance: track the top 5 holders' Q4 13F filings as soon as they are released in early 2026.

Key Investors and Their Impact on Radware Ltd. (RDWR)

You're looking at Radware Ltd. (RDWR) and trying to figure out if the big money agrees with your thesis. The short answer is that institutional investors-the hedge funds and asset managers-own a significant majority of the stock, holding about 73.34% of the shares outstanding. This high concentration means their collective moves, both buying and selling, are the primary drivers of the stock price and company strategy.

The investor profile is dominated by large, well-known funds, which is typical for a mid-cap cybersecurity player. The total value of institutional holdings is substantial, sitting around $744 million as of the most recent filings. This isn't a company run by a single activist, but rather a collection of powerful, active voices.

The Anchor Holders: Who's Buying and Why

The largest shareholder is Senvest Management LLC, a firm whose position in Radware Ltd. is significant enough to be their 10th largest holding. As of the Q2 2025 filing, Senvest held 4,046,559 shares, valued at approximately $119,131,000. Their stake alone represents about 9.48% of the company.

The 'why' behind these anchor holdings is generally a belief in Radware Ltd.'s pivot to cloud security and its new AI-driven offerings. When you see funds like Artisan Partners Limited Partnership and Penserra Capital Management LLC take top spots, it signals a deeper dive into the company's fundamentals, especially its strong Q3 2025 revenue of $75.3 million and a non-GAAP diluted EPS of $0.28.

• Senvest Management LLC: Largest holder, a core position for them.
• Artisan Partners Limited Partnership: A major institutional buyer, often looking for undervalued growth.
• BlackRock, Inc.: A passive giant, whose presence lends stability and liquidity.

Recent Moves and the Influence of Trading

Recent trading activity in Q3 2025 shows a mixed, but telling, picture. This isn't a one-way trade; it's a healthy debate among the smart money. For example, Artisan Partners Limited Partnership was a significant buyer, adding 431,572 shares in Q3 2025. This move suggests confidence in the company's direction, particularly following the launch of products like the LLM Firewall, which addresses the growing security concerns around Generative AI applications.

Conversely, Senvest Management trimmed its stake by 1.7% in Q2, selling 69,038 shares, which is a common portfolio rebalancing move, not necessarily a vote of no confidence. Penserra Capital Management LLC also removed 341,604 shares in Q3, after having bought a new position in Q2 valued at $84,960,000. This back-and-forth trading creates volatility, but it also provides entry points for new investors.

Here's the quick math on some key Q3 2025 institutional activity:

What this estimate hides is the difference between active funds (like Artisan) and passive index funds (like BlackRock, Inc.). BlackRock's increase of 56,809 shares is likely due to index tracking, while Artisan's large purchase is a defintely a high-conviction, active investment decision.

Investor Influence on Strategy and Governance

While Radware Ltd. has no single controlling shareholder, the institutional block holds immense sway over corporate governance. The upcoming Annual General Meeting in December 2025, where shareholders will vote on the election of three Class II directors, is a key moment for these large investors to exert their influence. The Estate of Yehuda Zisapel, a non-institutional but significant holder with 7.17% of shares, also plays a role in maintaining the company's foundational vision.

The high institutional ownership ensures management stays focused on initiatives that drive shareholder value, such as the aggressive U.S. expansion and the continued investment in Artificial Intelligence (AI) solutions like the AI SOC Xpert. The market is clearly rewarding the focus on cloud Annual Recurring Revenue (ARR), which accelerated 24% year-over-year to $89 million in Q3 2025. This growth is exactly what the big funds are looking for. To understand the long-term view that guides these investors, you should review the Mission Statement, Vision, & Core Values of Radware Ltd. (RDWR).

So, the investors are buying into the cloud and AI story, but they are also demanding results, which explains the mixed trading as they adjust positions based on quarterly performance. Your action: Watch the Q4 2025 guidance of $0.290-0.300 EPS closely-it's the next hurdle these major investors are focused on.

Market Impact and Investor Sentiment

You're looking for a clear read on Radware Ltd. (RDWR), and the current investor sentiment is best described as cautiously optimistic, but defintely mixed. The market is struggling to reconcile strong 2025 earnings beats with a premium valuation, resulting in a consensus 'Hold' rating from analysts despite a significant price upside projected.

The core issue is that while the company is executing, its price-to-earnings (P/E) ratio sits high at around 60.8x as of November 2025, which is nearly double the peer average of 30.2x. This lofty valuation signals that investors are already baking in substantial future growth from their cloud and new AI-driven security offerings, leaving little room for error. Wolfe Research, however, argues this valuation is 'too cheap' for a best-in-class provider given its accelerating cloud growth.

Analyst Perspectives and Price Targets

Wall Street analysts are not fully aligned, which is why the stock has a consensus 'Hold' rating. The average 12-month price target is set at $32.50, suggesting a notable upside from the recent trading range. This implies a belief that the company's strategic shift toward cloud subscriptions and new product launches, like the LLM Firewall announced in November 2025, will pay off.

Here's the quick math: the difference between the current stock price and the consensus target is the market's expected reward for successful execution of the Mission Statement, Vision, & Core Values of Radware Ltd. (RDWR).

The range of targets shows the debate clearly:

Recent Market Reactions to Ownership Moves

The stock market's response to Radware Ltd.'s performance has been counter-intuitive, showing a cautious investor base. For example, after the Q3 2025 earnings release on October 29th, the company reported an EPS of $0.28 on revenue of $75.31 million, both beating analyst expectations. But, the shares opened down approximately 4.6%. A similar pattern followed the Q2 2025 beat, where the stock fell 9.64% pre-market. This is a classic sign of profit-taking or a reaction to conservative forward guidance, not a sign of poor performance.

This volatility is also reflected in the institutional ownership shifts. While institutional investors own a massive 77.14% of the stock, their recent activity is a mixed bag. You see some major players trimming positions, but others are building them up.

Investor Sentiment of Major Shareholders

The institutional landscape for Radware Ltd. (RDWR) is dominated by a few key players, and their actions reveal a nuanced sentiment. Senvest Management LLC, one of the largest shareholders, trimmed its stake by 1.7% in Q2 2025, selling 69,038 shares, but still holds 4,046,559 shares valued at over $119.1 million. That's a trim, not an exit. Other major institutions were buying, showing confidence in the long-term story.

Here are the top institutional holders and their Q3 2025 activity, based on September 30, 2025, filings:

• Artisan Partners Limited Partnership: Added 431,572 shares, a 16.0% increase in their position.
• BlackRock, Inc.: Increased its holdings by 56,809 shares, bringing its total to 1,550,375 shares.
• Penserra Capital Management LLC: Decreased its stake by 341,604 shares.

So, the sentiment is fractured: activist-style funds like Senvest are taking some chips off the table, while major asset managers like BlackRock, Inc. are quietly increasing their exposure. It tells you the long-term growth story is still compelling, but short-term valuation concerns are real. The next step is to monitor the Q4 2025 earnings, which is guided for $0.290-0.300 EPS, and see if the market rewards the execution this time.