Cadence Design Systems, Inc. (CDNS) Stock Analysis
Recovery setup
Technology · Software - Application
Hold if already holding. Not a fresh buy at $324.90, but acceptable to hold if already in. Reasons: Thin upside margin: 5.3%; Expensive valuation.
Cadence Design Systems develops AI-driven EDA software, accelerated hardware, and silicon IP for semiconductor and electronics systems companies worldwide. Revenue comes primarily from time-based software subscriptions plus hardware and IP sales; customers include semiconductor... Read more
Hold if already holding. Not a fresh buy at $324.90, but acceptable to hold if already in. Reasons: Thin upside margin: 5.3%; Expensive valuation. Chart setup: Death cross but MACD improving, RSI 73. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, positive momentum, no SEC red flags, news boost analyst 0.80, earnings proximity 88d clear, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicChina10-K Item 1A: 'the ongoing geopolitical and economic uncertainty between the United States and China, where we conduct business and have derived a substantial percentage of our revenue'
- MEDIUMSuppliersingle supplier or limited number of suppliers for hardware10-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'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.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
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Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $324.90, but acceptable to hold if already in. Reasons: Thin upside margin: 5.3%; Expensive valuation. Chart setup: Death cross but MACD improving, RSI 73. Maintain position. Not compelling to add more. Target $342.01 (+5.3%), stop $302.06 (−7.6%), A.R:R 0.3:1. Score 5.8/10, moderate confidence.
Take-profit target: $342.01 (+5.3% upside). Target $342.01 (+5.3%), stop $302.06 (−7.6%), A.R:R 0.3:1. Stop-loss: $302.06.
Thin upside margin: 5.3%; Expensive valuation.
Cadence Design Systems, Inc. trades at a P/E of 76.9 (forward 35.2). TrendMatrix value score: 2.7/10. Verdict: Hold.
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 AI-driven EDA software, accelerated hardware, and silicon IP for semiconductor and...
Cadence Design Systems develops AI-driven EDA software, accelerated hardware, and silicon IP for semiconductor and electronics systems companies worldwide. Revenue comes primarily from time-based software subscriptions plus hardware and IP sales; customers include semiconductor chip designers and systems companies globally.