Short Interest in Cadence Design Systems, Inc. (NASDAQ:CDNS) Drops By 7.2%

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the target of a significant drop in short interest in October. As of October 31st, there was short interest totalling 2,440,000 shares, a drop of 7.2% from the October 15th total of 2,630,000 shares. Approximately 0.9% of the company’s stock are sold short. Based on an average daily trading volume, of 1,250,000 shares, the days-to-cover ratio is currently 2.0 days.

Cadence Design Systems Stock Performance

CDNS traded up $1.28 during trading on Friday, hitting $268.27. The stock had a trading volume of 1,013,487 shares, compared to its average volume of 1,648,150. The company has a 50 day moving average price of $243.70 and a 200-day moving average price of $233.45. The firm has a market cap of $72.99 billion, a price-to-earnings ratio of 76.43, a P/E/G ratio of 3.31 and a beta of 1.04. Cadence Design Systems has a one year low of $154.88 and a one year high of $274.32. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.44 and a quick ratio of 1.31.

Cadence Design Systems (NASDAQ:CDNS) last released its quarterly earnings results on Monday, October 23rd. The software maker reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.06. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1 billion. Cadence Design Systems had a return on equity of 34.64% and a net margin of 24.42%. The firm’s quarterly revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.79 EPS. As a group, research analysts predict that Cadence Design Systems will post 4.13 EPS for the current year.

Analyst Ratings Changes

CDNS has been the subject of a number of analyst reports. Morgan Stanley initiated coverage on Cadence Design Systems in a research note on Friday, November 10th. They issued an “equal weight” rating and a $260.00 price target for the company. Robert W. Baird raised their price target on Cadence Design Systems from $253.00 to $257.00 in a research note on Tuesday, July 25th. KeyCorp raised their price target on Cadence Design Systems from $270.00 to $290.00 and gave the company an “overweight” rating in a research note on Thursday, September 14th. Needham & Company LLC reiterated a “buy” rating and set a $268.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 24th. Finally, Bank of America lifted their target price on Cadence Design Systems from $285.00 to $305.00 in a research note on Tuesday, October 10th. One equities research analyst has rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $264.50.

Insider Buying and Selling

In related news, VP Aneel Zaman sold 1,207 shares of the stock in a transaction dated Tuesday, August 29th. The stock was sold at an average price of $231.86, for a total transaction of $279,855.02. Following the completion of the transaction, the vice president now directly owns 66,080 shares in the company, valued at $15,321,308.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In related news, VP Aneel Zaman sold 1,207 shares of the stock in a transaction dated Tuesday, August 29th. The stock was sold at an average price of $231.86, for a total transaction of $279,855.02. Following the completion of the transaction, the vice president now directly owns 66,080 shares in the company, valued at $15,321,308.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Vincentelli Albert Sangiovanni sold 4,000 shares of the stock in a transaction dated Friday, September 8th. The stock was sold at an average price of $241.26, for a total value of $965,040.00. Following the transaction, the director now owns 66,683 shares of the company’s stock, valued at $16,087,940.58. The disclosure for this sale can be found here. Over the last three months, insiders sold 21,279 shares of company stock worth $5,049,575. 1.99% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cadence Design Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lindbrook Capital LLC raised its holdings in Cadence Design Systems by 2.5% in the 3rd quarter. Lindbrook Capital LLC now owns 1,844 shares of the software maker’s stock valued at $432,000 after acquiring an additional 45 shares in the last quarter. Savant Capital LLC raised its holdings in Cadence Design Systems by 2.7% in the 3rd quarter. Savant Capital LLC now owns 1,733 shares of the software maker’s stock valued at $406,000 after acquiring an additional 45 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in Cadence Design Systems by 9.0% in the 3rd quarter. Advisors Asset Management Inc. now owns 545 shares of the software maker’s stock valued at $128,000 after acquiring an additional 45 shares in the last quarter. Redhawk Wealth Advisors Inc. raised its holdings in shares of Cadence Design Systems by 0.4% during the 2nd quarter. Redhawk Wealth Advisors Inc. now owns 11,461 shares of the software maker’s stock worth $2,688,000 after buying an additional 47 shares in the last quarter. Finally, Nilsine Partners LLC raised its holdings in shares of Cadence Design Systems by 2.7% during the 2nd quarter. Nilsine Partners LLC now owns 1,769 shares of the software maker’s stock worth $415,000 after buying an additional 47 shares in the last quarter. 83.95% of the stock is owned by institutional investors and hedge funds.

About Cadence Design Systems

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.