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

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

Analyst Upgrades and Downgrades

CDNS has been the subject of several recent analyst reports. Needham & Company LLC decreased their price target on Cadence Design Systems from $320.00 to $315.00 and set a “buy” rating for the company in a research note on Tuesday, October 29th. Oppenheimer began coverage on shares of Cadence Design Systems in a research report on Wednesday, September 25th. They issued an “underperform” rating and a $225.00 price target on the stock. Piper Sandler raised shares of Cadence Design Systems from a “neutral” rating to an “overweight” rating and set a $318.00 price objective for the company in a report on Tuesday, August 6th. Rosenblatt Securities reiterated a “neutral” rating and issued a $280.00 target price on shares of Cadence Design Systems in a report on Tuesday, October 29th. Finally, Mizuho initiated coverage on shares of Cadence Design Systems in a report on Tuesday, October 22nd. They set an “outperform” rating and a $325.00 price target for the company. One analyst has rated the stock with a sell rating, two have given a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $326.00.

Cadence Design Systems Price Performance

NASDAQ:CDNS traded down $13.33 during mid-day trading on Friday, hitting $289.71. The company’s stock had a trading volume of 1,583,318 shares, compared to its average volume of 1,774,879. The company has a market capitalization of $79.46 billion, a price-to-earnings ratio of 76.04, a P/E/G ratio of 3.75 and a beta of 1.02. The company has a current ratio of 2.45, a quick ratio of 2.27 and a debt-to-equity ratio of 0.54. Cadence Design Systems has a fifty-two week low of $241.29 and a fifty-two week high of $328.99. The stock has a fifty day moving average of $274.49 and a 200-day moving average of $282.77.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, October 28th. The software maker reported $1.64 EPS for the quarter, topping 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 during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter last year, the company earned $1.01 EPS. Cadence Design Systems’s revenue was up 18.8% on a year-over-year basis. As a group, equities analysts forecast that Cadence Design Systems will post 4.75 EPS for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, CFO John M. Wall sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 28th. The shares were sold at an average price of $265.91, for a total transaction of $2,659,100.00. Following the transaction, the chief financial officer now owns 38,654 shares in the company, valued at approximately $10,278,485.14. This trade represents a 20.55 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Paul Cunningham sold 650 shares of the company’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $276.00, for a total transaction of $179,400.00. Following the completion of the sale, the vice president now owns 61,111 shares of the company’s stock, valued at $16,866,636. This represents a 1.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 15,634 shares of company stock valued at $4,217,635. 1.99% of the stock is owned by insiders.

Hedge Funds Weigh In On Cadence Design Systems

Institutional investors have recently added to or reduced their stakes in the company. Prestige Wealth Management Group LLC grew its holdings in shares of Cadence Design Systems by 56.6% during the third quarter. Prestige Wealth Management Group LLC now owns 166 shares of the software maker’s stock worth $45,000 after purchasing an additional 60 shares during the last quarter. Brophy Wealth Management LLC acquired a new position in shares of Cadence Design Systems during the third quarter worth approximately $212,000. M&T Bank Corp grew its stake in shares of Cadence Design Systems by 78.5% during the third quarter. M&T Bank Corp now owns 35,218 shares of the software maker’s stock valued at $9,546,000 after purchasing an additional 15,491 shares during the last quarter. Executive Wealth Management LLC acquired a new stake in shares of Cadence Design Systems in the third quarter valued at approximately $524,000. Finally, SGL Investment Advisors Inc. bought a new position in Cadence Design Systems in the 3rd quarter worth approximately $698,000. 84.85% of the stock is owned by institutional investors.

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.