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NASDAQ:CDNS

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

$304.60
-5.50 (-1.77%)
(As of 02:04 PM ET)
Today's Range
$304.45
$306.89
50-Day Range
$290.30
$322.80
52-Week Range
$194.01
$327.36
Volume
466,910 shs
Average Volume
1.47 million shs
Market Capitalization
$82.92 billion
P/E Ratio
79.74
Dividend Yield
N/A
Price Target
$313.60

Cadence Design Systems MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.78 Rating Score
Upside/​Downside
2.5% Upside
$313.60 Price Target
Short Interest
Healthy
1.02% of Float Sold Short
Dividend Strength
N/A
Sustainability
-2.01
Upright™ Environmental Score
News Sentiment
0.82mentions of Cadence Design Systems in the last 14 days
Based on 13 Articles This Week
Insider Trading
Selling Shares
$66.18 M Sold Last Quarter
Proj. Earnings Growth
21.37%
From $4.82 to $5.85 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.43 out of 5 stars

Computer And Technology Sector

298th out of 1,806 stocks

Prepackaged Software Industry

82nd out of 600 stocks

CDNS stock logo

About Cadence Design Systems Stock (NASDAQ:CDNS)

Cadence Design Systems, Inc. is a leading American multinational computational software company headquartered in San Jose, California. Founded in 1988 through the merger of SDA Systems and ECAD, Inc., Cadence has become a major player in the electronic design automation (EDA) industry. The company specializes in providing software, hardware, and silicon structures that facilitate the design of integrated circuits, systems on chips (SoCs), and printed circuit boards. The history of Cadence Design Systems traces back to 1988, when the company was formed through the merger of SDA Systems and ECAD, Inc. SDA Systems was founded in 1983 by Dr. Alberto Sangiovanni-Vincentelli and Dr. Richard Newton, and it was known for its innovations in circuit design technology. ECAD, Inc. was a pioneer in electronic design software and had a strong presence in the EDA market. Following the merger, Cadence quickly established itself as a leader in the EDA space, providing cutting-edge solutions for complex design challenges. Over the years, the company has continued to innovate and expand its product portfolio, catering to the evolving needs of the semiconductor industry.

Cadence's mission is to empower electronic design innovation and play a vital role in shaping the future of technology. The company aims to simplify the design process, optimize productivity and accelerate time-to-market for its customers. By offering advanced design solutions, Cadence seeks to enable engineers and designers to efficiently bring innovative electronic products to the market. Cadence Design Systems offers a comprehensive suite of products and services catering to various semiconductor design stages. These solutions help design teams create complex chips, systems, and boards while ensuring functionality, performance, and reliability.

The company's product offerings include software tools for custom IC design, digital implementation, and verification technologies. Cadence's custom IC design tools enable engineers to create unique and optimized integrated circuits tailored to specific applications. The digital implementation tools streamline converting a chip's logic design into a physical layout, optimizing its performance and power consumption. Furthermore, Cadence provides a wide range of verification technologies, such as simulation and formal verification, to ensure the correctness and reliability of chip designs. The company's IP solutions encompass various pre-designed semiconductor components, enabling faster and more efficient chip development.

A dynamic and experienced management team leads cadence Design Systems with deep expertise in the semiconductor and technology sectors. Dr. Anirudh Devgan, a seasoned executive, assumed the role of Chief Executive Officer and President in December 2021. With a background in engineering and leadership positions in the semiconductor industry, he brings a strategic vision and a focus on driving growth and innovation at Cadence.

Over the past few years, Cadence Design Systems has demonstrated solid financial performance, with impressive revenue growth and increasing net income. This revenue growth reflects Cadence's ability to meet the evolving demands of its target market and deliver innovative solutions. The increase in net income showcases Cadence's efficient cost management and successful execution of its business strategies. Furthermore, Cadence Design Systems achieved a healthy net profit margin indicating the company's ability to generate profits while maintaining a competitive pricing strategy.

 Cadence's valuation metrics indicate that the company is trading at a premium compared to its peers. This premium valuation may reflect investors' confidence in Cadence's growth potential and its position as a key player in the EDA industry. The factors driving Cadence's valuation include its consistent revenue and earnings growth, strong market position, and the potential for continued innovation and expansion. The company's focus on artificial intelligence and machine learning in chip design provides a strategic advantage in meeting the industry's evolving needs. Various factors, such as market dynamics, industry trends, and macroeconomic conditions, could influence recent changes in investor sentiment. Any perceived risks or uncertainties in the semiconductor industry could impact investor perception of Cadence's future growth prospects.

The broader electronic design automation (EDA) industry is a critical enabler of semiconductor development, enabling the creation of sophisticated chips and electronic systems. Cadence Design Systems has established itself as a prominent player in this competitive landscape, offering a diverse portfolio of EDA solutions and IP offerings. As the semiconductor industry experiences rapid advancements and increased demand for innovative products, Cadence's focus on advanced node design, low-power solutions, and system-level integration positions it favorably compared to its peers. The company's competitive advantages include its rich history of technological expertise, an extensive customer base, and a comprehensive product suite. Moreover, Cadence's strategic partnerships with leading semiconductor manufacturers and system integrators further enhance its competitive positioning. While the EDA industry presents significant growth opportunities, Cadence must remain agile and adapt to evolving market dynamics. Continued investment in research and development, strategic acquisitions, and a customer-centric approach will be vital in maintaining a competitive edge in the industry.

Cadence Design Systems is well-positioned to capitalize on several growth opportunities in the semiconductor landscape. With the increasing demand for more complex and power-efficient chips, the company's expertise in advanced node design and low-power solutions becomes critical. The rising prominence of artificial intelligence, machine learning, and data center technologies offers significant growth potential for Cadence. As these technologies drive the development of specialized chips and accelerators, Cadence's design tools and IP solutions play a crucial role in supporting the innovation and optimization of these products. Additionally, the growing adoption of 5G and the Internet of Things (IoT) presents opportunities for Cadence to provide solutions that enable seamless connectivity and efficient data processing. Cadence's competitive advantages in pursuing these opportunities lie in its extensive product portfolio, deep industry partnerships, and ability to deliver cutting-edge solutions that address the challenges faced by semiconductor designers.

While Cadence Design Systems has exhibited strong financial performance and a solid market position, it has risks and challenges. One potential risk is the highly competitive nature of the EDA industry, with several players offering similar products and services. Price competition and the need to continually innovate to stay ahead are inherent challenges in this market. Moreover, the semiconductor industry is subject to cyclical fluctuations, influenced by economic conditions, geopolitical tensions, and supply chain disruptions. Any slowdown in the global economy or adverse industry conditions could impact Cadence's revenue growth. As the semiconductor landscape evolves rapidly, Cadence must address technological advancements and changing customer preferences to remain relevant. In managing these risks, Cadence employs various risk management strategies, including diversification of its product portfolio, ongoing investments in research and development, and maintaining strong customer relationships.

CDNS Stock Price History

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Company Calendar

Last Earnings
2/12/2024
Today
4/12/2024
Next Earnings (Confirmed)
4/22/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Prepackaged software
Sub-Industry
Application Software
Current Symbol
NASDAQ:CDNS
CUSIP
12738710
Employees
11,200
Year Founded
1988

Price Target and Rating

Average Stock Price Target
$313.60
High Stock Price Target
$350.00
Low Stock Price Target
$230.00
Potential Upside/Downside
+1.1%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.78
Research Coverage
9 Analysts

Profitability

Net Income
$1.04 billion
Pretax Margin
31.34%

Debt

Sales & Book Value

Annual Sales
$4.09 billion
Cash Flow
$4.49 per share
Book Value
$12.51 per share

Miscellaneous

Free Float
270,551,000
Market Cap
$84.42 billion
Optionable
Optionable
Beta
1.04

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Key Executives

Should I Buy Cadence Design Systems Stock? CDNS Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Cadence Design Systems, Inc.:

  • Cadence Design Systems provides a wide range of software, hardware, and services for integrated circuit design, catering to various industries such as consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science.
  • The company offers functional verification services with advanced platforms like JasperGold, Xcelium, Palladium, and Protium, enhancing the efficiency and accuracy of chip verification processes.
  • Cadence Design Systems' intellectual property (IP) products provide pre-verified and customizable functional blocks, reducing design complexity and time-to-market for customers.
  • The company's physical implementation tools, including place and route optimization and multiple patterning preparation, contribute to the seamless development of IC designs, ensuring high performance and reliability.
  • Recent positive market sentiment and financial performance have led to a steady increase in Cadence Design Systems' stock price, indicating investor confidence in the company's growth potential.

Cons

Investors should be bearish about investing in Cadence Design Systems, Inc. for these reasons:

  • Market competition in the prepackaged software industry, where Cadence operates, is intense, leading to potential challenges in maintaining market share and profitability.
  • Fluctuations in the semiconductor industry, which heavily influences Cadence's business, can impact the company's revenue and growth prospects, making it susceptible to market volatility.
  • Dependency on technological advancements and innovation in the semiconductor sector may pose risks if Cadence fails to keep pace with industry trends and customer demands.
  • Regulatory changes and geopolitical factors can affect Cadence Design Systems' global operations and supply chain, introducing uncertainties that could impact the company's financial performance.
  • Investors need to carefully assess the company's financial health, market positioning, and growth strategies to make informed decisions, considering both the opportunities and risks associated with investing in Cadence Design Systems.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Tuesday, April 9, 2024. Please send any questions or comments about these Cadence Design Systems pros and cons to contact@marketbeat.com.

CDNS Stock Analysis - Frequently Asked Questions

Should I buy or sell Cadence Design Systems stock right now?

9 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Cadence Design Systems in the last twelve months. There are currently 2 hold ratings and 7 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" CDNS shares.
View CDNS analyst ratings
or view top-rated stocks.

What is Cadence Design Systems' stock price target for 2024?

9 brokers have issued 1 year price objectives for Cadence Design Systems' stock. Their CDNS share price targets range from $230.00 to $350.00. On average, they predict the company's stock price to reach $313.60 in the next twelve months. This suggests a possible upside of 2.5% from the stock's current price.
View analysts price targets for CDNS
or view top-rated stocks among Wall Street analysts.

How have CDNS shares performed in 2024?

Cadence Design Systems' stock was trading at $272.37 at the start of the year. Since then, CDNS shares have increased by 12.3% and is now trading at $305.83.
View the best growth stocks for 2024 here
.

When is Cadence Design Systems' next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Monday, April 22nd 2024.
View our CDNS earnings forecast
.

How can I listen to Cadence Design Systems' earnings call?

Cadence Design Systems will be holding an earnings conference call on Monday, April 22nd at 5:00 PM Eastern. Interested parties can register for or listen to the call using this link.

How were Cadence Design Systems' earnings last quarter?

Cadence Design Systems, Inc. (NASDAQ:CDNS) posted its quarterly earnings data on Monday, February, 12th. The software maker reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.05. The software maker earned $1.07 billion during the quarter, compared to the consensus estimate of $1.06 billion. Cadence Design Systems had a trailing twelve-month return on equity of 35.57% and a net margin of 25.46%. The company's quarterly revenue was up 18.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.75 earnings per share.
Read the conference call transcript
.

What guidance has Cadence Design Systems issued on next quarter's earnings?

Cadence Design Systems issued an update on its FY 2024 earnings guidance on Tuesday, February, 13th. The company provided EPS guidance of 5.870-5.970 for the period, compared to the consensus estimate of 5.880. The company issued revenue guidance of $4.6 billion-$4.6 billion, compared to the consensus revenue estimate of $4.6 billion.

What is Lip-Bu Tan's approval rating as Cadence Design Systems' CEO?

675 employees have rated Cadence Design Systems Chief Executive Officer Lip-Bu Tan on Glassdoor.com. Lip-Bu Tan has an approval rating of 98% among the company's employees. This puts Lip-Bu Tan in the top 20% of approval ratings compared to other CEOs of publicly-traded companies.

What other stocks do shareholders of Cadence Design Systems own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Cadence Design Systems investors own include NVIDIA (NVDA), Advanced Micro Devices (AMD), PayPal (PYPL), Alibaba Group (BABA), Intel (INTC), QUALCOMM (QCOM), Cisco Systems (CSCO), Salesforce (CRM), Adobe (ADBE) and Home Depot (HD).

Who are Cadence Design Systems' major shareholders?

Cadence Design Systems' stock is owned by a variety of institutional and retail investors. Top institutional shareholders include Los Angeles Capital Management LLC (0.18%), Perpetual Ltd (0.10%), Park National Corp OH (0.04%), Czech National Bank (0.02%), Congress Asset Management Co. MA (0.01%) and Contravisory Investment Management Inc. (0.01%). Insiders that own company stock include Aneel Zaman, Anirudh Devgan, Chin-Chi Teng, James D Plummer, John B Shoven, John M Wall, Karna Nisewaner, Lip Bu Tan, Mark Adams, Paul Cunningham, Thomas P Beckley, Vincentelli Albert Sangiovanni and Young Sohn.
View institutional ownership trends
.

How do I buy shares of Cadence Design Systems?

Shares of CDNS stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Does Cadence Design Systems have any subsidiaries?
The following companies are subsidiares of Cadence Design Systems: AWR Corporation, Altos Design Automation, Ambit Design Systems, Antrim Design Systems, Azuro, Azuro Inc., Beijing Cadence Electronics Technology Company Limited, Beijing Cadence Information Technology Co. Ltd., Bell Labs DA Group Of Lucent, C2 Design Automation (d/b/a Forte Design Systems), CadMos Design Technology, Cadence Design (Israel) II Ltd., Cadence Design Enablement Unlimited Company, Cadence Design Systems (Canada) Ltd., Cadence Design Systems (Cyprus) Ltd., Cadence Design Systems (India) Private Limited, Cadence Design Systems (Ireland) Limited, Cadence Design Systems (Israel) Ltd., Cadence Design Systems (Japan) B.V., Cadence Design Systems (S) Pte Ltd., Cadence Design Systems (Taiwan) B.V., Cadence Design Systems A.B., Cadence Design Systems B.V., Cadence Design Systems GmbH, Cadence Design Systems I B.V., Cadence Design Systems Kft., Cadence Design Systems LLC, Cadence Design Systems Leasing Inc., Cadence Design Systems Limited, Cadence Design Systems Management (Shanghai) Ltd., Cadence Design Systems S.A.S., Cadence Design Systems S.r.l., Cadence Design Systems do Brasil Microeletronica Ltda., Cadence Group Unlimited Company, Cadence International (Cyprus) Ltd., Cadence International Ltd., Cadence Korea Ltd., Cadence Taiwan Inc., Cadence Technology Limited, Cadence U.S. Inc., Castlewilder Global Unlimited Company, Castlewilder Unlimited Company, Celestry Design Technologies, Chip Estimate, Chip Estimate Corporation, Clear Shape Technologies, CommandCAD, Cooper & Chyan Technology, Cosmic Circuits, DSM Technologies, Daffodil Acquisition II Inc., Denali Software, Denali Software Kabushiki Kaisha, Denali Software LLC, Design Acceleration, Diablo Research, Détente Technology, ETop Design Automation, Esperan, Evatronix - IP Business, Forte Design Systems, Gardenia MJM II, Get2Chip, High Level Design Systems, Integrand Software, Invarium, Jasper Design Automation, Jasper Design Automation LLC, Jasper Holdings Ltd., K2 Technologies, Knowlent, Nanjing Kai Ding Electronics Technology Co. Ltd., Nascentric, Neolinear, OrCAD, Parsec Software, Pinebush Technologies, Plato Design Systems, Praesagus (Cadence), Q Design Automation, Quickturn Design Systems, Quickturn Design Systems Inc., Rocketick, Rocketick Inc., SFM Technology Inc., Seed Solutions, Shanghai Cadence Electronics Technology Co. Ltd., Sigrity, Sigrity Inc., Silicon Perspective, Solomon Design Automation (SDA), SpinCircuit, TVP I LLC, TVP II LLC, TVP III LLC, Tangent Systems Corporation, Taray, Taray Inc., Telos Venture Partners III L.P., Tensilica, Tensilica LLC, TranSwitch, Tundra Holdings Inc., Valid Logic Systems, Verisity, Verplex Systems, nusemi, and nusemi inc.
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This page (NASDAQ:CDNS) was last updated on 4/12/2024 by MarketBeat.com Staff

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