Cadence Design Systems, Inc. (CDNS) Stock Analysis
Recovery setup
Technology · Software - Application
Hold if already holding. Not a fresh buy at $336.95, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; 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 $336.95, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Expensive valuation. Chart setup: Death cross but MACD improving, RSI 73. Maintain position. Not compelling to add more. Score 5.6/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.80, earnings proximity 87d clear, semi cycle peak clear). Fails on favorable risk/reward ratio and death cross (50MA < 200MA). 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
3 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
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
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Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $336.95, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Expensive valuation. Chart setup: Death cross but MACD improving, RSI 73. Maintain position. Not compelling to add more. Target $342.01 (+1.5%), stop $313.48 (−7.5%), A.R:R 0.1:1. Score 5.6/10, moderate confidence.
Take-profit target: $342.01 (+1.5% upside). Target $342.01 (+1.5%), stop $313.48 (−7.5%), A.R:R 0.1:1. Stop-loss: $313.48.
Analyst target reached - limited upside remaining; Expensive valuation.
Cadence Design Systems, Inc. trades at a P/E of 77.0 (forward 35.1). TrendMatrix value score: 2.5/10. 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.