Cadence Design Systems, Inc. (NASDAQ:CDNS) Sees Significant Increase in Short Interest

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the recipient of a large increase in short interest in the month of October. As of October 31st, there was short interest totalling 3,920,000 shares, an increase of 19.1% from the October 15th total of 3,290,000 shares. Approximately 1.5% of the company’s shares are sold short. Based on an average daily trading volume, of 1,880,000 shares, the days-to-cover ratio is presently 2.1 days.

Cadence Design Systems Price Performance

CDNS traded down $13.33 during midday trading on Friday, reaching $289.71. 1,583,318 shares of the company’s stock were exchanged, compared to its average volume of 2,441,267. The business has a 50-day simple moving average of $274.49 and a two-hundred day simple moving average of $282.82. The company has a quick ratio of 2.27, a current ratio of 2.45 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $79.46 billion, a price-to-earnings ratio of 76.04, a price-to-earnings-growth ratio of 3.93 and a beta of 1.02. Cadence Design Systems has a one year low of $241.29 and a one year high of $328.99.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, October 28th. The software maker reported $1.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.20. Cadence Design Systems had a return on equity of 28.49% and a net margin of 23.87%. The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.18 billion. During the same quarter last year, the business earned $1.01 earnings per share. The firm’s quarterly revenue was up 18.8% compared to the same quarter last year. As a group, research analysts predict that Cadence Design Systems will post 4.75 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on CDNS shares. Berenberg Bank assumed coverage on Cadence Design Systems in a research note on Tuesday, October 15th. They issued a “buy” rating and a $320.00 price target on the stock. Needham & Company LLC reduced their price target on shares of Cadence Design Systems from $320.00 to $315.00 and set a “buy” rating on the stock in a research report on Tuesday, October 29th. Loop Capital began coverage on Cadence Design Systems in a research note on Monday, November 11th. They issued a “buy” rating and a $360.00 target price for the company. Rosenblatt Securities reaffirmed a “neutral” rating and set a $280.00 target price on shares of Cadence Design Systems in a research report on Tuesday, October 29th. Finally, Oppenheimer assumed coverage on shares of Cadence Design Systems in a research report on Wednesday, September 25th. They set an “underperform” rating and a $225.00 price target for the company. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat.com, Cadence Design Systems has an average rating of “Moderate Buy” and an average target price of $326.00.

Insider Activity

In other Cadence Design Systems news, CFO John M. Wall sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 28th. The stock was sold at an average price of $265.91, for a total value of $2,659,100.00. Following the sale, the chief financial officer now directly owns 38,654 shares in the company, valued at $10,278,485.14. This trade represents a 20.55 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Paul Cunningham sold 650 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $266.89, for a total value of $173,478.50. Following the sale, the vice president now owns 64,544 shares of the company’s stock, valued at approximately $17,226,148.16. The trade was a 1.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 15,634 shares of company stock valued at $4,217,635 in the last quarter. Insiders own 1.99% of the company’s stock.

Institutional Trading of Cadence Design Systems

Several institutional investors have recently added to or reduced their stakes in the company. Avantax Advisory Services Inc. grew its stake in shares of Cadence Design Systems by 36.3% during the first quarter. Avantax Advisory Services Inc. now owns 2,791 shares of the software maker’s stock worth $869,000 after buying an additional 743 shares during the last quarter. Dorsey & Whitney Trust CO LLC boosted its stake in shares of Cadence Design Systems by 22.7% during the first quarter. Dorsey & Whitney Trust CO LLC now owns 1,233 shares of the software maker’s stock valued at $384,000 after purchasing an additional 228 shares in the last quarter. Cumberland Partners Ltd bought a new stake in shares of Cadence Design Systems during the first quarter worth about $300,000. Nicolet Advisory Services LLC increased its stake in shares of Cadence Design Systems by 21.0% in the first quarter. Nicolet Advisory Services LLC now owns 1,134 shares of the software maker’s stock valued at $353,000 after buying an additional 197 shares during the period. Finally, Vanguard Group Inc. raised its holdings in Cadence Design Systems by 1.8% in the 1st quarter. Vanguard Group Inc. now owns 24,940,556 shares of the software maker’s stock valued at $7,763,496,000 after buying an additional 437,101 shares during the last quarter. 84.85% of the stock is currently owned by institutional investors.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.