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

Cadence Design Systems, Inc. (NASDAQ:CDNS) was the target of a large drop in short interest in the month of July. As of July 31st, there was short interest totalling 2,810,000 shares, a drop of 11.1% from the July 15th total of 3,160,000 shares. Approximately 1.0% of the shares of the stock are short sold. Based on an average daily trading volume, of 1,950,000 shares, the days-to-cover ratio is currently 1.4 days.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on CDNS shares. Robert W. Baird dropped their target price 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. StockNews.com cut Cadence Design Systems from a “buy” rating to a “hold” rating in a research note on Thursday, May 2nd. Bank of America lifted their price objective on Cadence Design Systems from $330.00 to $350.00 and gave the stock a “buy” rating in a research note on Thursday, May 30th. KeyCorp lifted their price objective on Cadence Design Systems from $350.00 to $355.00 and gave the stock an “overweight” rating in a research note on Thursday, June 27th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $320.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, July 23rd. Two research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $334.56.

Cadence Design Systems Stock Performance

Shares of Cadence Design Systems stock opened at $281.96 on Tuesday. Cadence Design Systems has a one year low of $221.66 and a one year high of $328.99. The firm has a market cap of $76.81 billion, a price-to-earnings ratio of 73.43, a price-to-earnings-growth ratio of 3.14 and a beta of 1.03. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.43 and a quick ratio of 1.32. The stock’s 50-day moving average is $292.35 and its 200-day moving average is $296.02.

Cadence Design Systems (NASDAQ:CDNS) last released 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. Cadence Design Systems had a return on equity of 29.54% and a net margin of 25.36%. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.04 billion. During the same quarter in the prior year, the company posted $0.94 earnings per share. Cadence Design Systems’s revenue was up 8.6% on a year-over-year basis. Equities analysts predict that Cadence Design Systems will post 4.74 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of the firm’s stock in a transaction that occurred on Monday, July 15th. The stock was 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 in the company, valued at approximately $14,643,548.07. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other Cadence Design Systems news, Director Vincentelli Albert Sangiovanni sold 1,500 shares of Cadence Design Systems stock in a transaction on Monday, July 15th. The stock was sold at an average price of $314.57, for a total value of $471,855.00. Following the completion of the transaction, the director now owns 46,551 shares in the company, valued at approximately $14,643,548.07. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Karna Nisewaner sold 600 shares of Cadence Design Systems stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $287.31, for a total value of $172,386.00. Following the completion of the transaction, the senior vice president now owns 19,880 shares of the company’s stock, valued at approximately $5,711,722.80. The disclosure for this sale can be found here. Insiders sold 60,397 shares of company stock worth $17,805,844 in the last 90 days. 1.99% of the stock is owned by company insiders.

Institutional Trading of Cadence Design Systems

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Cerity Partners LLC raised its stake in Cadence Design Systems by 54.8% in the fourth quarter. Cerity Partners LLC now owns 5,515 shares of the software maker’s stock valued at $1,502,000 after buying an additional 1,952 shares during the period. Federated Hermes Inc. grew its position in shares of Cadence Design Systems by 24.8% in the fourth quarter. Federated Hermes Inc. now owns 215,570 shares of the software maker’s stock valued at $58,715,000 after purchasing an additional 42,807 shares during the last quarter. Calamos Advisors LLC grew its position in shares of Cadence Design Systems by 1,201.3% in the fourth quarter. Calamos Advisors LLC now owns 27,327 shares of the software maker’s stock valued at $7,443,000 after purchasing an additional 25,227 shares during the last quarter. Western Wealth Management LLC acquired a new position in shares of Cadence Design Systems in the fourth quarter valued at approximately $220,000. Finally, Greenleaf Trust grew its position in shares of Cadence Design Systems by 0.4% in the fourth quarter. Greenleaf Trust now owns 14,290 shares of the software maker’s stock valued at $3,892,000 after purchasing an additional 54 shares during the last quarter. Institutional investors own 84.85% of the company’s stock.

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.