An In-Depth Look at Cadence Design Systems, Inc’s (CDNS) Stock Performance

In the past week, CDNS stock has gone up by 8.38%, with a monthly decline of -13.99% and a quarterly plunge of -17.63%. The volatility ratio for the week is 2.98%, and the volatility levels for the last 30 days are 3.85% for Cadence Design Systems, Inc The simple moving average for the past 20 days is 2.02% for CDNS’s stock, with a -10.96% simple moving average for the past 200 days.

Is It Worth Investing in Cadence Design Systems, Inc (NASDAQ: CDNS) Right Now?

The price-to-earnings ratio for Cadence Design Systems, Inc (NASDAQ: CDNS) is above average at 65.88x. The 36-month beta value for CDNS is also noteworthy at 1.15. There are mixed opinions on the stock, with 13 analysts rating it as a “buy,” 6 rating it as “overweight,” 3 rating it as “hold,” and 1 rating it as “sell.”

The public float for CDNS is 273.27M, and at present, short sellers hold a 1.55% of that float. The average trading volume of CDNS on March 19, 2025 was 1.99M shares.

CDNS) stock’s latest price update

Cadence Design Systems, Inc (NASDAQ: CDNS) has experienced a decline in its stock price by -0.48 compared to its previous closing price of 255.11. However, the company has seen a gain of 8.38% in its stock price over the last five trading days. businesswire.com reported 2025-03-18 that SAN JOSE, Calif.–(BUSINESS WIRE)—- $CDNS #CDNS–Cadence expanded its multi-year collaboration with NVIDIA, focusing on driving advancements in accelerated computing and agentic AI.

Analysts’ Opinion of CDNS

Many brokerage firms have already submitted their reports for CDNS stocks, with Redburn Atlantic repeating the rating for CDNS by listing it as a “Buy.” The predicted price for CDNS in the upcoming period, according to Redburn Atlantic is $350 based on the research report published on January 13, 2025 of the current year 2025.

Wells Fargo, on the other hand, stated in their research note that they expect to see CDNS reach a price target of $350. The rating they have provided for CDNS stocks is “Overweight” according to the report published on November 22nd, 2024.

Loop Capital gave a rating of “Buy” to CDNS, setting the target price at $360 in the report published on November 12th of the previous year.

CDNS Trading at -9.55% from the 50-Day Moving Average

After a stumble in the market that brought CDNS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.83% of loss for the given period.

Volatility was left at 3.85%, however, over the last 30 days, the volatility rate increased by 2.98%, as shares sank -15.49% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.71% lower at present.

During the last 5 trading sessions, CDNS rose by +8.38%, which changed the moving average for the period of 200-days by -12.97% in comparison to the 20-day moving average, which settled at $248.85. In addition, Cadence Design Systems, Inc saw -15.50% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at CDNS starting from KARNA NISEWANER, who proposed sale 1,850 shares at the price of $246.25 back on Mar 17 ’25. After this action, KARNA NISEWANER now owns shares of Cadence Design Systems, Inc, valued at $455,562 using the latest closing price.

Cunningham Paul, the Sr. Vice President of Cadence Design Systems, Inc, sale 650 shares at $252.73 during a trade that took place back on Mar 03 ’25, which means that Cunningham Paul is holding 58,123 shares at $164,274 based on the most recent closing price.

Stock Fundamentals for CDNS

Current profitability levels for the company are sitting at:

  • 0.29 for the present operating margin
  • 0.92 for the gross margin

The net margin for Cadence Design Systems, Inc stands at 0.23. The total capital return value is set at 0.18. Equity return is now at value 26.13, with 14.42 for asset returns.

Based on Cadence Design Systems, Inc (CDNS), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.51. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 17.82.

Currently, EBITDA for the company is 1.67 billion with net debt to EBITDA at -0.1. When we switch over and look at the enterprise to sales, we see a ratio of 14.96. The receivables turnover for the company is 6.82for trailing twelve months and the total asset turnover is 0.52. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.93.

Conclusion

In summary, Cadence Design Systems, Inc (CDNS) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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