Cadence Design Systems, Inc. (CDNS) Stock Analysis
Range Bound setup · Temp Headwind edge
Technology · Software - Application
Hold if already holding. Not a fresh buy at $385.22, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single supplier for certain hardware components; Analyst target reached - limited upside remaining.
Cadence Design Systems develops EDA software, semiconductor IP, and system design and analysis tools for semiconductor and electronics companies worldwide. Revenue totaled $5,297 million in fiscal 2025, with 91% from product and maintenance licenses and 9% from engineering... Read more
Hold if already holding. Not a fresh buy at $385.22, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single supplier for certain hardware components; Analyst target reached - limited upside remaining. Chart setup: RSI 54 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.3/10, moderate confidence.
Passes 6/9 gates (clean insider activity, news boost analyst 0.70, news boost analyst cluster(5), earnings proximity 45d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-06-13Recent Developments — Cadence Design Systems, Inc.
Latest news
- NEWS The ‘ChatGPT Moment’ for Cadence Design Systems Might Just Have Arrived, Says Needham. Should You Buy CDNS Stock Now? - — Yahoo Finance positive
- NEWS Why Cadence Design Systems (CDNS) Stock Is Up Today - Yahoo Finance — Yahoo Finance positive
- NEWS Cadence Design Systems Inc (CDNS) Stock Down 5.2% -- Now Underva - GuruFocus — GuruFocus negative
- NEWS Universal Beteiligungs und Servicegesellschaft mbH Buys 11,511 Shares of Cadence Design Systems, Inc. $CDNS - MarketBeat — MarketBeat neutral
- NEWS Cadence Design Systems Stock On Fire: Up 25% With 8-Day Winning Streak - Trefis — Trefis positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
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'
- HIGHSuppliersingle supplier for certain hardware components10-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'
Material Events(8-K, last 90d)
- 2026-05-12Item 5.02LOWCadence stockholders approved amendment of Omnibus Equity Incentive Plan on May 7, 2026: adds 5,000,000 authorized shares, eliminates fixed April 30, 2030 plan termination date, and modifies certain administration provisions. Board approved amendment February 12, 2026.SEC filing →
- 2026-05-12Item 5.02LOWAmendment to November 17, 2025 8-K reporting appointment of Dr. Luc Van den hove as director (effective January 1, 2026). On May 7, 2026, the Board designated Van den hove to the Compensation Committee. No other changes to original filing.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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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
Hold if already holding. Not a fresh buy at $385.22, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single supplier for certain hardware components; Analyst target reached - limited upside remaining. Chart setup: RSI 54 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $408.36 (+6.0%), stop $358.01 (−7.6%), A.R:R -0.7:1. Score 5.3/10, moderate confidence.
Take-profit target: $408.36 (+6.1% upside). Target $408.36 (+6.0%), stop $358.01 (−7.6%), A.R:R -0.7:1. Stop-loss: $358.01.
Concentration risk — Supplier: single supplier for certain hardware components; Analyst target reached - limited upside remaining; Expensive valuation.
Cadence Design Systems, Inc. trades at a P/E of 89.2 (forward 40.9). TrendMatrix value score: 2.1/10. Verdict: Hold.
32 analysts cover CDNS with a consensus score of 4.2/5. Average price target: $385.
What does Cadence Design Systems, Inc. do?Cadence Design Systems develops EDA software, semiconductor IP, and system design and analysis tools for semiconductor...
Cadence Design Systems develops EDA software, semiconductor IP, and system design and analysis tools for semiconductor and electronics companies worldwide. Revenue totaled $5,297 million in fiscal 2025, with 91% from product and maintenance licenses and 9% from engineering services. Software is licensed primarily through multi-year time-based arrangements, creating recurring revenue.