CleaRank Financial AI • AI-powered analysis using real-time market data from TwelveData
Analysis reviewed by Michelle Sofia, Market Analyst. Data refreshed daily. Not financial advice.
Cadence Design Systems (CDNS) is currently trading at $329.46, a level that positions it above its 50-day and 200-day moving averages ($320.41 and $326.94), indicating a generally positive technical trend. The stock's valuation, while high with a P/E ratio of 66.44, is supported by strong revenue growth of 24.2% and a strong profit margin of 23.61%. Analysts maintain a strong Buy consensus, with a median price target of $415.44, suggesting an upside of 26.1% from current levels. Despite the premium valuation, Cadence Design Systems demonstrates solid financial health with a healthy return on equity of 23.23% and a manageable debt-to-equity ratio of 0.39. The company's consistent earnings beats, as evidenced by recent quarterly results, further strengthen confidence. However, significant insider selling pressure, with over $122 million in sales, warrants close monitoring as a potential risk factor.
CDNS at a glance
Cadence Design Systems, Inc. (CDNS): Buy, 78/100 on CleaRank's AI score.
TrendUp: the price is above both its 50- and 200-day moving averages ($320.41 and $326.94).
InsidersInsiders sold $122.2M and made no open-market purchases over the last 18 months.
ValuationP/E of 66.4 against 34.0 for the Technology sector: a premium to peers (+95%).
As of October 14, 2026, Cadence Design Systems, Inc. (CDNS) trades at $329.46. Wall Street's consensus target is $415.44 across 25 analysts. The 14-day RSI (daily closes) is 50, in neutral territory, and the price is above its 50-day simple moving average of $320.41.
Figures as of October 14, 2026.
Only on CleaRank
Figures we compute ourselves from CDNS's own price, earnings and insider-filing history. Tap one to see it in context.
Trading at a significant premium to sector peers (+95%), suggesting market expectations for superior growth or market position.
CDNS Financial Performance
Revenue vs. Earnings
Annual
Quarterly
Earnings Reality Check
In the last 2 quarters, CDNS beat the analyst estimate 2 times; the stock rose in the first session after every beat.
CDNS earnings surprises and the stock's reaction
Report
EPS estimate
EPS actual
Surprise
First session
5 sessions
Jul 27, 2026
$2.06
$2.11
+2.43%
+1.80%
-0.73%
Feb 17, 2026
$1.91
$1.99
+4.19%
+7.60%
+2.53%
The first session is the first full trading day on the news: the report day itself for a report before the open, the next day for one after the close. Surprise is actual EPS against the consensus estimate.
As of October 14, 2026, CDNS has beaten the analyst EPS estimate in 2 of its last 2 reported quarters and rose in the first trading session after every one of those beats; its latest report, on July 27, 2026, came in 2.43% above the estimate and the stock moved +1.80% in the first session.
CDNS Analysis
Company's Health4/5
12-Month Analyst Target+26.10% above price
Median of 25 analysts (12-month)
$415.44
AI Analyst Consensus ScoreBuy
Cadence Design Systems is trading at $329.46 with its 14-day RSI at 49.7, indicating neutral momentum. The stock is currently positioned above its 50-day SMA ($320.41) but below its 20-day EMA ($333.10), suggesting a mixed short-term technical picture. Volume has been above average recently, with the latest volume at 2.91 million compared to a 2.02 million average. Key support levels are near the 50-day SMA, while resistance may be found near the 20-day EMA and recent highs. The current technical setup suggests a consolidation phase, with potential for a breakout or breakdown depending on upcoming catalysts.
ProTips
Monitor insider selling activity closely, as over $122 million in sales have been reported, which could signal potential headwinds.
The stock is trading near its 50-day and 200-day SMAs, suggesting a potential inflection point. Watch for a decisive move above resistance or a pullback to support levels.
Key Catalysts
BullishStrong Analyst Buy Consensus and Price Targets
25 analysts maintain a Buy rating with a median price target of $415.44, indicating a 26.1% upside potential from current levels.
Source: Wall Street Summary
BullishConsistent Earnings Beats
Recent quarterly reports have shown EPS exceeding estimates, with positive price reactions, demonstrating the company's ability to meet or surpass expectations.
Source: Earnings Reports
BearishHeavy Insider Selling Pressure
Insiders have sold over $122 million in stock, indicating potential concerns or a need for liquidity among management.
Source: Insider Transactions
BearishPremium Valuation
The P/E ratio of 66.44 and P/S ratio of 15.77 are significantly higher than sector averages, making the stock susceptible to pullbacks if growth falters.
Source: Company Fundamentals
Market Outlook
The base case scenario for Cadence Design Systems anticipates continued growth, supported by strong analyst conviction and a median price target of $415.44, implying a 26.1% upside. The company's strong revenue growth, healthy profit margins, and consistent earnings beats provide a solid foundation for this outlook over the next 6-12 months. Potential upside catalysts include further market share gains in electronic design automation and successful integration of new technologies. However, significant insider selling and a high valuation present considerable downside risks. A slowdown in revenue growth or increased competitive pressure could lead to a re-rating of the stock, potentially pushing it towards its support levels near the 50-day SMA.
Key Statistics
Market Cap
90.73B
P/E Ratio
66.44
EPS (TTM)
5.03
Dividend Yield
0.00%
52 Week High
416.69
52 Week Low
262.75
As of October 14, 2026, CDNS trades at $329.46, with a market value of $90.73B and a P/E ratio of 66.44.
Cadence Design Systems trades at a P/E ratio of 66.44, which is significantly higher than the sector median of 34, indicating a premium valuation. However, its price-to-sales ratio of 15.77 is also elevated compared to the sector average of 7.5. The company's strong revenue growth of 24.2% and a profit margin of 23.61% help justify this premium. With a return on equity of 23.23%, Cadence demonstrates efficient use of shareholder capital, outperforming the sector average of 13.4%. Its debt-to-equity ratio stands at 0.39, which is within reasonable limits. The company's ability to consistently grow revenue and maintain healthy profit margins supports its current valuation, despite the high P/E ratio.
Earnings & Growth Analysis
Cadence Design Systems most recently reported earnings on July 27, 2026, with an EPS of $2.11, beating the estimate of $2.06 by 2.43%. This follows a previous beat in February 2026, where EPS of $1.99 exceeded estimates by 4.19%. The stock saw positive price reactions following both of these earnings reports, indicating investor confidence in the company's performance.
Key Risks
Significant insider selling, totaling over $122 million, presents a key risk. While the company exhibits strong growth and profitability, its high P/E ratio of 66.44 makes it vulnerable to market corrections or any slowdown in its growth trajectory. Competition within the software application sector is also intense, requiring continuous innovation to maintain market share.
Technical Indicators i
RSI (14-day)
49.71
MACD (12, 26)
8.69
SMA (50-day)
320.41
SMA (200-day)
326.94
Technical RatingNeutral
RSI
Neutral
SMA Cross
Bearish
Price vs SMA
Bullish
MACD
Bullish
Moving averages show a lagging Death Cross (50-day: $320.41, 200-day: $326.94), price action is firmly bullish above key moving averages.
As of October 14, 2026, with CDNS at $329.46, its 14-day RSI is 49.7 (neutral territory), its 50-day simple moving average is $320.41 and its 200-day is $326.94.
Calculated by CleaRank on daily closes as of October 14, 2026: Wilder's 14-day RSI, 50- and 200-day simple moving averages, MACD line (12, 26).
Market Correlations
How this stock moves relative to other assets
Based on 1 year of daily price data. Correlations may vary over different time periods.
S&P 500 (SPY)+0.58
Moderate correlation
Nasdaq 100 (QQQ)+0.62
Moderate correlation
Bitcoin (BTC)+0.30
Weak correlation
Gold (XAU)+0.09
Weak correlation
As of October 14, 2026, CDNS's 1-year correlation of daily returns is +0.58 with S&P 500 (SPY), +0.62 with Nasdaq 100 (QQQ), +0.30 with Bitcoin (BTC) and +0.09 with gold (XAU).
Check Custom Correlation
How does any other asset move with CDNS? One year of daily closes, Pearson correlation.
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CDNS Wall Street View
12-month price targets
Low $300.00Median $415.44 (+26.1%)High $470.00
Ratings
Buy 23Hold 2Sell 03 months ago: 22 of 25 buy
Recent rating actions
Recent analyst rating actions on CDNS
Date
Firm
Action
Rating
Jul 28, 2026
B of A Securities
Maintains
Buy
Jul 28, 2026
Rosenblatt
Maintains
Buy
Jul 28, 2026
Citigroup
Maintains
Buy
Jul 28, 2026
Baird
Maintains
Outperform
Jul 28, 2026
Needham
Reiterates
Buy
Jul 28, 2026
Piper Sandler
Maintains
Neutral
As of October 14, 2026, 25 Wall Street analysts cover CDNS: 23 rate it a buy or strong buy, 2 a hold and 0 a sell or strong sell. Their 12-month price targets range from $300.00 to $470.00, with a median of $415.44, 26.1% above the price of $329.46.
Source: TwelveData analyst consensus. Targets and ratings belong to the analysts, not to CleaRank.
CDNS Trade Plans
Specific entry, exit, and risk management levels
Select Your Trade Bias
Risk Tolerance
Conservative2%Aggressive
Portfolio Value
$
Position Size: Enter portfolio size →
Long entry pick an entry style
Conservative
$322.87
2% below current price (Pullback entry)
Lower risk, wait for pullback
Aggressive
$329.46
Buy at current price
Higher risk, immediate entry
Risk Management
STOP LOSS
$307.83
MAX LOSS
-4.7%
Volatility-Adjusted Stop Loss
Calculated based on RSI (49.7) and current market volatility
These levels come from CDNS's moving averages and recent volatility, not from a forecast. Educational levels, not financial advice; the full disclaimer is at the foot of the page.
Growth of $10,000
A $10,000 investment in CDNS in October 2016 would be worth about $128,588 today, compared with about $36,506 for the same investment in the S&P 500 benchmark.
Compare with Another Ticker
CDNS Drawdowns & Recovery
Worst fall, last 10 years
-32.1%
February 2020 to March 2020
Recovery
1 months
back at the old peak by April 2020
From the 10-year high
-20.9%
highest close, June 2026
1-year holds that gained
89%
of every 1-year window
As of October 14, 2026, CDNS's worst peak-to-trough fall over the last 10 years was -32.1% (February 2020 to March 2020); it regained that peak by April 2020, 1 months after the low, and 89% of 1-year holding periods ended with a gain.
From weekly closing values. A drawdown is the fall from the highest value reached so far to a later low.
Monte Carlo Projection (10yr)
CleaRank's 10-year Monte Carlo simulation projects that a $10,000 investment in CDNS today could grow to about $29,077 by 2036 in the base case, with a 90th-percentile outcome near $117,911 and a 10th-percentile outcome around $7,171. Projections are statistical simulations, not guarantees.
CDNS Stock Price Prediction: 2030
CleaRank's simulation projects a price near $505 for CDNS by 2030 in the base case, from $329 today (1.5x over 4 years). The 10th-percentile path ends near $208. These are outcomes of a Monte Carlo simulation run on CDNS's historical return distribution, not price targets, and they assume no dividends are reinvested.
CDNS simulated price paths by year
Year
10th percentile
Base case
90th percentile
2027
$235
$367
$571
2028
$218
$408
$763
2029
$211
$454
$977
2030
$208
$505
$1,224
2031
$209
$562
$1,512
Method: a lognormal simulation of CDNS's own volatility and capped historical trend, re-run daily; base case is the median path, the outer columns the 10th and 90th percentiles.
As of October 14, 2026, CDNS insiders reported 56 open-market sales worth $122.2M and no open-market purchases over the last 18 months; grants and option exercises are not counted.
Recent insider transactions in CDNS
Date
Insider
Type
Shares
Value
Oct 1, 2026
SANGIOVANNI VINCENTELLI ALBERTO
Director
Sell
1.3K
$437.6K
Sep 15, 2026
CUNNINGHAM PAUL ALEXANDER
Officer
Sell
2.0K
$554.2K
Sep 15, 2026
CUNNINGHAM PAUL ALEXANDER
Officer
Option
1.0K
$138.0K
Sep 10, 2026
BRENNAN ITA M
Director
Sell
180
$51.4K
Aug 26, 2026
SCANNELL PAUL
Officer
Sell
280
$94.9K
Aug 25, 2026
SANGIOVANNI VINCENTELLI ALBERTO
Director
Sell
1.3K
$401.1K
Aug 25, 2026
CUNNINGHAM PAUL ALEXANDER
Officer
Grant
1.0K
-
Aug 21, 2026
TENG CHIN-CHI
Officer
Sell
4.7K
$1.5M
Aug 21, 2026
TENG CHIN-CHI
Officer
Option
1.0K
$202.9K
Aug 17, 2026
CUNNINGHAM PAUL ALEXANDER
Officer
Sell
2.0K
$646.6K
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Frequently Asked Questions
What are the biggest risks facing Cadence Design Systems?
Key risks include significant insider selling totaling over $122 million, a high P/E ratio of 66.44 that makes the stock sensitive to market downturns, and intense competition within the software application sector.
How does Cadence Design Systems' valuation compare to its peers?
Cadence Design Systems trades at a premium compared to its sector averages. Its P/E ratio of 66.44 versus the sector median of 34, and its price-to-sales ratio is 15.77 compared to the sector median of 7.5.
What is the current technical outlook for Cadence Design Systems stock?
The 14-day RSI is at 49.71, indicating neutral momentum. The stock is trading above its 50-day SMA but below its 20-day EMA, suggesting a mixed short-term technical picture with potential for consolidation.
Has Cadence Design Systems shown consistent earnings growth?
Yes, Cadence Design Systems has demonstrated consistent earnings beats in its recent reports, with EPS exceeding estimates by 2.43% in July 2026 and 4.19% in February 2026, leading to positive stock price reactions.
How does insider activity look for Cadence Design Systems?
Insiders are net sellers, with $0 in total purchases versus $122.2M in total sales across recent filings. This heavy selling pressure from insiders is a notable concern.
What is the revenue growth outlook for Cadence Design Systems?
Analysts project revenue growth of 19.00% for the current year and 14.00% for the next year. Revenue is estimated to reach $6.3 billion for the current year and $7.2 billion for the next year.
What is the analyst price target for CDNS?
As of October 14, 2026, the 25 Wall Street analysts covering CDNS have 12-month targets from $300.00 to $470.00, with a median of $415.44, 26.1% above the current price of $329.46. 23 rate it a buy or strong buy, 2 a hold and 0 a sell or strong sell. Three months ago 22 of 25 rated it a buy.
What is CDNS's biggest drop in the last 10 years?
Cadence Design Systems, Inc. (CDNS)'s worst peak-to-trough fall over the last 10 years was -32.1%, from February 2020 to March 2020. It regained that peak by April 2020, 1 months after the low. Over the same period, 89% of 1-year holding periods ended with a gain.
What are CDNS's best and worst months?
Over the last 10 years, April has been CDNS's strongest month on average (+8.12%, rising in 8 of 10 years) and September its weakest (-2.67%, rising in 2 of 10 years). Seasonal averages describe the past and do not predict a given year.
How closely does CDNS move with the stock market?
Over the past year CDNS's daily returns were moderately correlated with the S&P 500 (SPY) (+0.58). Nasdaq 100 (QQQ): +0.62; Bitcoin (BTC): +0.30; Gold (XAU): +0.09. A figure near +1 means the two usually move together; near 0 means little relationship.
