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As of September 26, 2026, Cadence Design Systems, Inc. (CDNS) trades at $326.13. CleaRank Financial AI rates it Buy with a fair value of $405.00, 24.2% above the current price. Wall Street's consensus target is $405.00 across 26 analysts. RSI at 71 is in overbought territory, and the price is above its 50-day average of $318.37.
Cadence Design Systems, Inc. (CDNS)
Cadence Design Systems, Inc. NASDAQ
$326.13
4.130 (1.28%)
At close: Sep 25, 4:00 PM EDT
AI Analyst Consensus
79 / 100
Cadence Design Systems (CDNS) is currently trading at $326.13, just above its 200-day moving average of $325.53, indicating a potential stabilization after recent price action. The company has demonstrated strong financial performance, with revenue growth of 24.2% and a net profit margin of 23.61%. Analysts maintain a largely positive outlook, with a consensus rating of Buy and a median price target of $405.00, suggesting a 24.2% upside potential. The company operates in the Software - Application industry, a sector with a median P/E of 34 and revenue growth of 24.1%. CDNS's own P/E ratio stands at 64.97, significantly higher than the sector average, reflecting investor confidence in its growth prospects. However, substantial insider selling, totaling $121.9 million, presents a notable risk that warrants close observation.
CDNS Price Analysis
Market Metrics
Open
$324.97
Day Range
$322.78 to $330.81
Prev Close
$322.00
Volume
2.70M
52-Week Range
$262.75 to $416.69
Market Cap
$89.81B
Peer Benchmarking
Valuation vs Sector (Technology)
Performance vs XLK
Sector Position Analysis
Trading at a significant premium to sector peers (+91%), suggesting market expectations for superior growth or market position.
CDNS Financial Performance
Revenue vs. Earnings
Annual
Quarterly
Earnings Reality Check
Analysis: In the last 5 quarters, CDNS beat estimates 5 times. The stock rose 3 times the next day. Price tends to react positively to beats.
CDNS Analysis
Company's Health
4/5
12-Month Analyst Target
+24.18% Upside
Median of 26 analysts (12-month)
$405.00
AI Technical Analysis
Cadence Design Systems (CDNS) exhibits an RSI of 70.5, signaling an overbought condition that could precede a pullback. The stock is trading above its 50-day SMA of $318.37 and its 200-day SMA of $325.53, indicating a generally positive short-to-medium term trend. MACD is currently at -3.43, suggesting a bearish momentum signal. Key support levels are near the 50-day and 200-day SMAs, while resistance may be found near previous highs. Volume on the latest trading day was 2,697,000, slightly below the average of 2,767,330, indicating moderate investor interest. The stock's technicals suggest a cautious approach due to the overbought RSI, despite the overall upward trend.
ProTips
- Monitor insider selling activity closely; significant further dispositions could signal increased downside risk.
- The stock's RSI is currently overbought at 70.53, suggesting a potential for a short-term pullback. Consider waiting for a more favorable entry point or using tighter stop-losses.
- Given the premium valuation, any deceleration in revenue growth or earnings misses could lead to a sharp correction.
Key Catalysts
Bullish
Consistent Earnings Beats
Cadence Design Systems (CDNS) has a track record of exceeding analyst EPS estimates, most recently beating the June 2026 quarter estimate by 2.43%. This demonstrates operational efficiency and strong execution.
Source: Earnings ReportsBullish
Strong Revenue Growth
The company reported 24.2% revenue growth, aligning with sector averages and analyst projections for continued double-digit growth, supporting its premium valuation.
Source: Company FilingsBearish
Heavy Insider Selling
Insiders have sold a total of $121.9 million in stock, indicating a potential lack of confidence in the current valuation or a need for personal liquidity.
Source: Insider TransactionsBearish
Overbought Technical Conditions
The RSI reading of 70.53 suggests the stock may be overextended and could be due for a short-term correction.
Source: Technical AnalysisMarket Outlook
The base case outlook for Cadence Design Systems (CDNS) is cautiously optimistic, with a median analyst price target of $405.00, implying a 24.2% upside from the current price of $326.13. This target is supported by strong historical revenue growth of 24.2% and projected revenue growth of 17.2% for next year, alongside consistent earnings beats. Potential upside catalysts include continued innovation in electronic design automation (EDA) software and expansion into new markets. Conversely, downside risks include the stock's high valuation multiples, a potential market rotation away from growth stocks, and the ongoing insider selling activity which could signal a lack of near-term conviction from management. A sustained RSI above 70 also suggests a risk of overextension.
Key Statistics
| Market Cap | 89.81B |
|---|---|
| P/E Ratio | 64.97 |
| EPS (TTM) | 5.02 |
| Dividend Yield | 0.00% |
| 52 Week High | 416.69 |
| 52 Week Low | 262.75 |
Cadence Design Systems (CDNS) trades at a P/E ratio of 64.97, significantly above the sector median of 34, indicating a premium valuation. Its price-to-sales ratio is 15.39, also higher than the sector average of 7.5. The company boasts strong profitability with a net profit margin of 23.61% and a return on equity of 23.23%, both exceeding sector averages. Despite the high valuation multiples, CDNS demonstrates strong growth, with revenue increasing by 24.2% and analysts projecting 17.2% revenue growth next year. The company's balance sheet appears healthy, with a debt-to-equity ratio of 0.39, which is in line with the sector average. This combination of strong growth and profitability supports the premium valuation, though the high P/E ratio remains a point of consideration.
Earnings & Growth Analysis
Cadence Design Systems (CDNS) most recently reported earnings for the quarter ending June 2026, with actual EPS of $2.11 beating the estimate of $2.06 by 2.43%. This follows a significant beat in the prior quarter where actual EPS was $0.92 against an estimate of $0.74, a 24.32% surprise. The company has a history of positive earnings surprises, indicating consistent operational performance and effective execution against analyst expectations.
Key Risks
A primary risk for Cadence Design Systems (CDNS) is its elevated valuation, with a P/E ratio of 64.97 significantly exceeding the sector median. The stock's RSI is currently in overbought territory (70.53), suggesting potential for a short-term pullback. Also, substantial insider selling totaling $121.9 million indicates a lack of confidence from management regarding the current stock price.
Technical Indicators
| RSI (14) | 70.53 |
|---|---|
| MACD | -3.43 |
| SMA 50 | 318.37 |
| SMA 200 | 325.53 |
RSI
Overbought
SMA Cross
Bearish
Price vs SMA
Bullish
MACD
Bearish
Moving averages show a lagging Death Cross (50-day: $318.37, 200-day: $325.53), price action is firmly bullish above key moving averages, RSI at 70.5 indicates overbought conditions; consider caution for immediate entries.
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)
+0.59
Moderate correlation
Nasdaq 100 (QQQ)
+0.63
Moderate correlation
Bitcoin (BTC)
+0.33
Weak correlation
Gold (XAU)
+0.09
Weak correlation
Check Custom Correlation
How does any other asset move with CDNS? One year of daily closes, Pearson correlation.
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CDNS Trade Plans
Specific entry, exit, and risk management levels
Select Your Trade Bias
Risk Tolerance
Conservative
2%
Aggressive
Portfolio Value
$
Position Size: Enter portfolio size →
Long entry pick an entry style
Conservative
$319.61
2% below current price (Pullback entry)
Lower risk, wait for pullback
Aggressive
$326.13
Buy at current price
Higher risk, immediate entry
Risk Management
STOP LOSS
$303.98
MAX LOSS
-4.9%
Volatility-Adjusted Stop Loss
Calculated based on RSI (70.5) and current market volatility
Profit Targets (Based on Conservative Entry)
TARGET 1
$335.59
+5% (Conservative)
+2.9% (Aggressive)
TARGET 2
$351.57
+10% (Conservative)
+7.8% (Aggressive)
TARGET 3
$367.55
+15% (Conservative)
+12.7% (Aggressive)
Consider scaling out: Take 50% profit at Target 1, 30% at Target 2, let 20% run to Target 3
Calculate Your Trade
Disclaimer
This AI-generated trade plan for CDNS is for educational and informational purposes only and does not constitute financial advice. The analysis is based on historical data patterns and technical indicators which may not predict future results. Stock trading involves risk of loss. Verify all data independently and consult a qualified financial advisor. Generated on September 26, 2026.Growth of $10,000
A $10,000 investment in CDNS in September 2016 would be worth about $131,610 today, compared with about $36,004 for the same investment in the S&P 500 benchmark.
Compare with Another Ticker
Monte Carlo Projection (10yr)
CleaRank's 10-year Monte Carlo simulation projects that a $10,000 investment in CDNS today could grow to about $42,587 by 2036 in the base case, with a bull case near $172,076 and a bear case around $10,540. Projections are statistical simulations, not guarantees.
CDNS Stock Price Prediction: 2030
CleaRank's simulation projects a price near $582 for CDNS by 2030 in the base case, from $326 today (1.8x over 4 years). The downside path ends near $241. 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.
| Year | Downside (10th pct) | Base case | Upside (90th pct) |
|---|---|---|---|
| 2027 | $242 | $377 | $586 |
| 2028 | $233 | $436 | $814 |
| 2029 | $234 | $504 | $1,082 |
| 2030 | $241 | $582 | $1,408 |
| 2031 | $251 | $673 | $1,807 |
| 2032 | $264 | $778 | $2,295 |
| 2033 | $280 | $899 | $2,892 |
| 2034 | $298 | $1,039 | $3,624 |
| 2035 | $319 | $1,202 | $4,519 |
| 2036 | $344 | $1,389 | $5,612 |
Method: 10,000 simulated price paths using CDNS's historical volatility and drift, re-run daily. The base case is the median path; the two outer columns are the 10th and 90th percentile outcomes, which widen with time because uncertainty compounds. Simulations are not guarantees, and past volatility does not predict future returns. This is analysis, not investment advice.
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CDNS Insider Trading Analysis
Bought
None
No open-market buys
Sold
$121.9M
56 Transactions
Insiders
16
Active Traders
Avg Transaction
$2.2M
Large trades
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| Jun 2, 2026 | DEVGAN ANIRUDH
Chief Executive Officer
|
Sell | 76.8K | $30.8M |
| Jan 6, 2025 | DEVGAN ANIRUDH
Chief Executive Officer
|
Sell | 93.2K | $28.9M |
| Jan 2, 2024 | DEVGAN ANIRUDH
Chief Executive Officer
|
Sell | 99.9K | $26.3M |
| Feb 15, 2024 | BECKLEY THOMAS P
Officer
|
Sell | 65.3K | $19.4M |
| May 22, 2026 | DEVGAN ANIRUDH
Chief Executive Officer
|
Sell | 51.9K | $19.2M |
| May 18, 2023 | BECKLEY THOMAS P
Officer
|
Sell | 76.0K | $15.9M |
| Mar 18, 2024 | DEVGAN ANIRUDH
Chief Executive Officer
|
Sell | 48.5K | $14.7M |
| Jul 1, 2020 | DEVGAN ANIRUDH
President
|
Sell | 150.0K | $14.6M |
| Mar 10, 2021 | MANDAVA SURENDRA BABU
Officer
|
Sell | 90.7K | $11.6M |
| Aug 8, 2023 | WALL JOHN M
Chief Financial Officer
|
Sell | 49.1K | $11.2M |
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Frequently Asked Questions
What is Cadence Design Systems' (CDNS) stock price forecast for 2030?
Based on Monte Carlo simulations, Cadence Design Systems' (CDNS) stock price is projected to be $582.24 in 2030 under a base case scenario. The downside and upside projections are $240.74 and $1408.16, respectively. These figures represent simulation outcomes, not guaranteed price targets.
Is Cadence Design Systems (CDNS) stock a buy right now?
Cadence Design Systems (CDNS) is currently rated a Buy with a consensus score of 79 out of 100. The median analyst price target is $405.00, suggesting a 24.2% upside from the current price of $326.13.
How has Cadence Design Systems (CDNS) performed in recent earnings reports?
Cadence Design Systems (CDNS) most recently beat earnings estimates for the quarter ending June 2026, reporting $2.11 EPS against an expected $2.06. This continues a trend of positive earnings surprises, including a significant beat in the prior quarter.
What are the key risks facing Cadence Design Systems (CDNS)?
Key risks for Cadence Design Systems (CDNS) include its high valuation (P/E of 64.97), an overbought RSI technical indicator, and significant insider selling totaling $121.9 million.
How does Cadence Design Systems (CDNS) compare to its sector averages?
Cadence Design Systems (CDNS) trades at a higher P/E (64.97 vs 34) and P/S (15.39 vs 7.5) than the technology sector median. However, its revenue growth (24.2% vs 24.1%) and ROE (23.23% vs 13.4%) are strong and often exceed sector averages.
What is the technical outlook for Cadence Design Systems (CDNS) stock?
Technically, Cadence Design Systems (CDNS) is trading above its 50-day and 200-day moving averages ($318.37 and $325.53), indicating an upward trend. However, the RSI is overbought at 70.53, suggesting a potential for a short-term correction.
What are the forward-looking growth estimates for Cadence Design Systems (CDNS)?
Analysts project revenue growth of 17.2% for next year and an average annual growth rate of 18.4% over the next five years for Cadence Design Systems (CDNS).