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

Cadence Design Systems, Inc. (NASDAQ:CDNS - Get Free Report) was the target of a large drop in short interest in the month of May. As of May 15th, there was short interest totalling 4,080,000 shares, a drop of 12.4% from the April 30th total of 4,660,000 shares. Currently, 1.5% of the company's shares are sold short. Based on an average daily trading volume, of 2,240,000 shares, the days-to-cover ratio is currently 1.8 days.

Insider Buying and Selling

In other Cadence Design Systems news, VP Paul Cunningham sold 650 shares of the firm's stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $252.64, for a total value of $164,216.00. Following the transaction, the vice president now directly owns 108,799 shares of the company's stock, valued at $27,486,979.36. This trade represents a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction dated Thursday, April 24th. The shares were sold at an average price of $275.00, for a total value of $49,500.00. Following the completion of the transaction, the director now directly owns 7,411 shares in the company, valued at $2,038,025. This trade represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 18,445 shares of company stock valued at $5,615,733. 1.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its holdings in shares of Cadence Design Systems by 80.2% during the fourth quarter. Brighton Jones LLC now owns 1,519 shares of the software maker's stock worth $456,000 after buying an additional 676 shares in the last quarter. Union Bancaire Privee UBP SA acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth approximately $9,958,000. DAVENPORT & Co LLC increased its holdings in shares of Cadence Design Systems by 11.9% during the fourth quarter. DAVENPORT & Co LLC now owns 4,659 shares of the software maker's stock worth $1,400,000 after buying an additional 495 shares in the last quarter. Golden State Equity Partners increased its holdings in shares of Cadence Design Systems by 242.2% during the fourth quarter. Golden State Equity Partners now owns 859 shares of the software maker's stock worth $258,000 after buying an additional 608 shares in the last quarter. Finally, Resonant Capital Advisors LLC increased its holdings in shares of Cadence Design Systems by 5.9% during the fourth quarter. Resonant Capital Advisors LLC now owns 1,037 shares of the software maker's stock worth $312,000 after buying an additional 58 shares in the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems Stock Performance

CDNS stock traded up $4.56 during mid-day trading on Thursday, reaching $298.96. 981,672 shares of the stock traded hands, compared to its average volume of 2,015,192. The company has a quick ratio of 2.27, a current ratio of 2.93 and a debt-to-equity ratio of 0.53. Cadence Design Systems has a 52 week low of $221.56 and a 52 week high of $328.99. The business has a 50-day moving average of $284.78 and a two-hundred day moving average of $287.52. The firm has a market capitalization of $81.63 billion, a PE ratio of 77.45, a P/E/G ratio of 3.88 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings data on Monday, April 28th. The software maker reported $1.57 EPS for the quarter, beating analysts' consensus estimates of $1.50 by $0.07. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.24 billion. Cadence Design Systems had a net margin of 22.74% and a return on equity of 29.24%. The firm's revenue for the quarter was up 23.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.17 earnings per share. As a group, equities analysts predict that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CDNS has been the topic of a number of analyst reports. JPMorgan Chase & Co. raised Cadence Design Systems from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $300.00 to $325.00 in a research report on Thursday, April 24th. Oppenheimer lowered their price objective on Cadence Design Systems from $225.00 to $200.00 and set an "underperform" rating for the company in a report on Wednesday, March 19th. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a research note on Thursday, February 6th. Mizuho lifted their target price on Cadence Design Systems from $300.00 to $325.00 and gave the company an "outperform" rating in a research note on Tuesday, April 29th. Finally, Piper Sandler boosted their price objective on Cadence Design Systems from $318.00 to $328.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 19th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and eleven have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $325.23.

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.