Cadence Design Systems, Inc. (CDNS) Stock Analysis
Range Bound setup · Temp Headwind edge
Technology · Software - Application
Sell if holding. Analyst target reached at $346.12 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8.
Cadence Design Systems develops EDA software, accelerated hardware, and semiconductor IP used by chip and electronics companies. Total revenue was $5.297B in fiscal 2025, with 91% from product and maintenance (primarily time-based software licenses averaging 2-3 years) and 9%... Read more
Sell if holding. Analyst target reached at $346.12 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: RSI 58 mid-range, Bollinger mid-band. Score 5.4/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 72d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent Developments — Cadence Design Systems, Inc.
Latest news
- The ‘ChatGPT Moment’ for Cadence Design Systems Might Just Have Arrived, Says Needham. Should You Buy CDNS Stock Now? - — Yahoo Finance positive
- Why Cadence Design Systems (CDNS) Stock Is Up Today - Yahoo Finance — Yahoo Finance positive
- Cadence Design Systems Inc (CDNS) Stock Down 5.2% -- Now Underva - GuruFocus — GuruFocus negative
- Universal Beteiligungs und Servicegesellschaft mbH Buys 11,511 Shares of Cadence Design Systems, Inc. $CDNS - MarketBeat — MarketBeat neutral
- Cadence Design Systems Stock On Fire: Up 25% With 8-Day Winning Streak - Trefis — Trefis positive
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSuppliersingle or limited hardware component suppliers10-K Item 1A: 'We depend on a single supplier or a limited number of suppliers for certain hardware components and contract manufacturers for production of our hardware products, making us vulnerable to supply disruption and price fluctuation.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $346.12 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: RSI 58 mid-range, Bollinger mid-band. Prior stop was $326.20. Score 5.4/10, moderate confidence.
Take-profit target: $357.71 (+3.0% upside). Prior stop was $326.20. Stop-loss: $326.20.
Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Negative news sentiment (-0.67).
Cadence Design Systems, Inc. trades at a P/E of 80.6 (forward 37.0). TrendMatrix value score: 2.2/10. Verdict: Sell.
32 analysts cover CDNS with a consensus score of 4.2/5. Average price target: $380.
What does Cadence Design Systems, Inc. do?Cadence Design Systems develops EDA software, accelerated hardware, and semiconductor IP used by chip and electronics...
Cadence Design Systems develops EDA software, accelerated hardware, and semiconductor IP used by chip and electronics companies. Total revenue was $5.297B in fiscal 2025, with 91% from product and maintenance (primarily time-based software licenses averaging 2-3 years) and 9% from services. Three product categories: Core EDA, Semiconductor IP, and System Design & Analysis.