Cadence Design Systems (CDNS) Stock Price, News & Analysis

Company Overview

Cadence Design Systems, Inc. develops computational software, hardware, and semiconductor intellectual property used to design and verify electronic systems and integrated circuits. Its electronic design automation (EDA) solutions support chip development across areas such as digital and custom IC design, functional verification, emulation, prototyping, and system analysis.

The company also provides semiconductor IP, including processor cores, interconnect technologies, memory interfaces, and other building blocks that help customers develop complex chips. Its broader portfolio serves applications in artificial intelligence, hyperscale computing, mobile and consumer electronics, automotive, aerospace and defense, industrial systems, and telecommunications.

Cadence was formed in 1988 through the merger of SDA Systems and ECAD and is headquartered in San Jose, California. The company serves semiconductor and electronics companies, systems manufacturers, and other technology organizations worldwide. Anirudh Devgan has served as Cadence’s president and chief executive officer since 2021.

Key Stats

• Today's Range: $316.72 to $325.64
• 50-Day Range: $273.96 to $359.55
• 52-Week Range: $262.75 to $416.69
• Volume: 1.74 million shs
• Average Volume: 2.44 million shs
• Market Capitalization: $88.09 billion
• P/E Ratio: 63.59
• Dividend Yield: N/A
• Price Target: $404.14
• Consensus Rating: Moderate Buy

Cadence Design Systems Stock Analysis - MarketRank™

Cadence Design Systems scored higher than 93% of companies evaluated by MarketBeat, and ranked 79th out of 588 stocks in the technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.5 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Cadence Design Systems has received a consensus rating of Moderate Buy. The company's average rating score is 2.91, and is based on 1 strong buy rating, 18 buy ratings, 3 hold ratings, and no sell ratings.

Upside Potential

Cadence Design Systems has a consensus price target of $404.14, representing about 25.5% upside from its current price of $321.98.

Amount of Analyst Coverage

Cadence Design Systems has been the subject of 14 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 17.94%

Earnings Growth

Earnings for Cadence Design Systems are expected to grow by 17.94% in the coming year, from $6.41 to $7.56 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Cadence Design Systems is 63.88, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 38.75.

Price to Earnings Ratio vs. Sector

The P/E ratio of Cadence Design Systems is 63.88, which means that it is trading at a less expensive P/E ratio than the Technology sector average P/E ratio of about 77.70.

Price to Earnings Growth Ratio

Cadence Design Systems has a PEG Ratio of 3.42. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Cadence Design Systems has a P/B Ratio of 16.01. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.15% of the float of Cadence Design Systems has been sold short.

Short Interest Ratio / Days to Cover

Cadence Design Systems has a short interest ratio ("days to cover") of 2.17, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Cadence Design Systems has recently increased by 35.61%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Cadence Design Systems does not currently pay a dividend.

Dividend Growth

Cadence Design Systems does not have a long track record of dividend growth.

News and Social Media

• Score: 3.8 / 5
• News Sentiment: 1.08

News Sentiment

Cadence Design Systems has a news sentiment score of 1.08. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.52 average news sentiment score of Technology companies.

News Coverage This Week

MarketBeat has tracked 27 news articles for Cadence Design Systems this week, compared to 9 articles on an average week.

Search Interest

Only 19 people have searched for CDNS on MarketBeat in the last 30 days. This is a decrease of -10% compared to the previous 30 days.

MarketBeat Follows

16 people have added Cadence Design Systems to their MarketBeat watchlist in the last 30 days. This is an increase of 100% compared to the previous 30 days.

Company Ownership

• Score: 1.4 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Cadence Design Systems insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,834,139.00 in company stock.

Percentage Held by Insiders

0.49% of the stock of Cadence Design Systems is held by insiders.

Percentage Held by Institutions

84.85% of the stock of Cadence Design Systems is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Company Calendar

• Last Earnings: 7/27/2026
• Today: 10/20/2026
• Next Earnings (Estimated): 10/26/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Technology
• Industry: Software
• Sub-Industry: Application Software
• Current Symbol: NASDAQ:CDNS
• CIK: 813672
• Web: www.cadence.com
• Phone: (408) 943-1234
• Fax: 408-428-5001
• Employees: 13,800
• Year Founded: 1988

Price Target and Rating

• Average Price Target for Cadence Design Systems: $404.14
• High Price Target: $470.00
• Low Price Target: $300.00
• Potential Upside/Downside: +26.3%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.91
• Research Coverage: 22 Analysts

Profitability

• EPS (Trailing Twelve Months): $5.03
• Trailing P/E Ratio: 63.59
• Forward P/E Ratio: 49.90
• P/E Growth: 3.42
• Net Income: $1.11 billion
• Net Margins: 23.60%
• Pretax Margin: 31.25%
• Return on Equity: 27.98%
• Return on Assets: 15.35%

Debt

• Debt-to-Equity Ratio: 0.36
• Current Ratio: 1.74
• Quick Ratio: 1.53

Sales & Book Value

• Annual Sales: $5.30 billion
• Price / Sales: 16.63
• Cash Flow: $6.34 per share
• Price / Cash Flow: 50.44
• Book Value: $20.11 per share
• Price / Book: 15.91

Miscellaneous

• Outstanding Shares: 275,390,000
• Free Float: 274,044,000
• Market Cap: $88.09 billion
• Optionable: Optionable
• Beta: 1.13