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

Cadence Design Systems, Inc. (NASDAQ:CDNS) saw a large increase in short interest in the month of September. As of September 15th, there was short interest totalling 3,560,000 shares, an increase of 6.6% from the August 31st total of 3,340,000 shares. Based on an average trading volume of 2,040,000 shares, the days-to-cover ratio is presently 1.7 days. Approximately 1.3% of the shares of the company are short sold.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS traded down $6.74 during trading on Tuesday, reaching $264.29. The stock had a trading volume of 331,761 shares, compared to its average volume of 1,712,349. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.32 and a current ratio of 1.43. Cadence Design Systems has a 1-year low of $227.77 and a 1-year high of $328.99. The stock has a market cap of $72.00 billion, a PE ratio of 70.58, a PEG ratio of 3.30 and a beta of 1.02. The business has a fifty day moving average price of $267.11 and a 200-day moving average price of $288.67.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Monday, July 22nd. The software maker reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.06. The company had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.04 billion. Cadence Design Systems had a net margin of 25.36% and a return on equity of 29.54%. The firm’s quarterly revenue was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.94 EPS. On average, equities analysts forecast that Cadence Design Systems will post 4.73 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, VP Chin-Chi Teng sold 10,000 shares of the stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $276.36, for a total value of $2,763,600.00. Following the transaction, the vice president now directly owns 95,408 shares of the company’s stock, valued at $26,366,954.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction on Monday, July 15th. The shares were sold at an average price of $314.57, for a total transaction of $471,855.00. Following the completion of the transaction, the director now owns 46,551 shares of the company’s stock, valued at $14,643,548.07. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Chin-Chi Teng sold 10,000 shares of the company’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $276.36, for a total transaction of $2,763,600.00. Following the completion of the sale, the vice president now directly owns 95,408 shares in the company, valued at $26,366,954.88. The disclosure for this sale can be found here. In the last 90 days, insiders sold 27,672 shares of company stock valued at $7,590,312. 1.99% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Capital Market Strategies LLC increased its position in Cadence Design Systems by 3.1% during the second quarter. Capital Market Strategies LLC now owns 1,300 shares of the software maker’s stock worth $400,000 after purchasing an additional 39 shares during the last quarter. Inspire Advisors LLC increased its stake in Cadence Design Systems by 1.8% during the first quarter. Inspire Advisors LLC now owns 2,229 shares of the software maker’s stock worth $694,000 after acquiring an additional 40 shares during the last quarter. Wealthcare Advisory Partners LLC raised its position in Cadence Design Systems by 4.5% in the first quarter. Wealthcare Advisory Partners LLC now owns 951 shares of the software maker’s stock valued at $296,000 after purchasing an additional 41 shares during the period. First Affirmative Financial Network lifted its stake in shares of Cadence Design Systems by 3.6% in the 1st quarter. First Affirmative Financial Network now owns 1,325 shares of the software maker’s stock valued at $412,000 after purchasing an additional 46 shares during the last quarter. Finally, Gilbert & Cook Inc. grew its holdings in shares of Cadence Design Systems by 1.3% during the 1st quarter. Gilbert & Cook Inc. now owns 3,666 shares of the software maker’s stock worth $1,141,000 after purchasing an additional 47 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently weighed in on CDNS. Robert W. Baird reduced their price target on Cadence Design Systems from $341.00 to $338.00 and set an “outperform” rating for the company in a research report on Tuesday, July 23rd. Rosenblatt Securities reiterated a “neutral” rating and issued a $280.00 target price on shares of Cadence Design Systems in a research note on Tuesday, August 6th. Needham & Company LLC restated a “buy” rating and set a $320.00 price target on shares of Cadence Design Systems in a research report on Tuesday, July 23rd. KeyCorp upped their price objective on shares of Cadence Design Systems from $350.00 to $355.00 and gave the stock an “overweight” rating in a research report on Thursday, June 27th. Finally, Oppenheimer initiated coverage on Cadence Design Systems in a research report on Wednesday, September 25th. They set an “underperform” rating and a $225.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $323.60.

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.