The stock of Cadence Design Systems, Inc (NASDAQ: CDNS) has increased by 0.02 when compared to last closing price of 320.55. Despite this, the company has experienced a 0.39% gain in its stock price over the last five trading sessions. zacks.com reported 2025-05-20 that Strong AI demand, strategic acquisitions and solid guidance are positives for CDNS amid macro headwinds and premium valuation.
Is It Worth Investing in Cadence Design Systems, Inc (NASDAQ: CDNS) Right Now?
Cadence Design Systems, Inc (NASDAQ: CDNS) has a higher price-to-earnings ratio of 81.21x compared to its average ratio, The 36-month beta value for CDNS is at 1.03. Analysts have varying views on the stock, with 14 analysts rating it as a “buy,” 5 rating it as “overweight,” 3 as “hold,” and 1 as “sell.”
The public float for CDNS is 271.31M, and currently, shorts hold a 1.72% of that float. The average trading volume for CDNS on May 21, 2025 was 2.33M shares.
CDNS’s Market Performance
CDNS’s stock has seen a 0.39% increase for the week, with a 24.20% rise in the past month and a 18.65% gain in the past quarter. The volatility ratio for the week is 1.56%, and the volatility levels for the past 30 days are at 2.51% for Cadence Design Systems, Inc The simple moving average for the last 20 days is 4.21% for CDNS stock, with a simple moving average of 14.02% for the last 200 days.
Analysts’ Opinion of CDNS
Many brokerage firms have already submitted their reports for CDNS stocks, with JP Morgan repeating the rating for CDNS by listing it as a “Overweight.” The predicted price for CDNS in the upcoming period, according to JP Morgan is $325 based on the research report published on April 24, 2025 of the current year 2025.
Redburn Atlantic, 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 “Buy” according to the report published on January 13th, 2025.
Wells Fargo gave a rating of “Overweight” to CDNS, setting the target price at $350 in the report published on November 22nd of the previous year.
CDNS Trading at 16.07% 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 -2.54% of loss for the given period.
Volatility was left at 2.51%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares surge +20.47% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +36.50% upper at present.
During the last 5 trading sessions, CDNS rose by +0.12%, which changed the moving average for the period of 200-days by +28.09% in comparison to the 20-day moving average, which settled at $307.62. In addition, Cadence Design Systems, Inc saw 6.71% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CDNS starting from PLUMMER JAMES D, who sale 868 shares at the price of $319.95 back on May 16 ’25. After this action, PLUMMER JAMES D now owns 23,996 shares of Cadence Design Systems, Inc, valued at $277,715 using the latest closing price.
PLUMMER FAMILY TRUST, the Director of Cadence Design Systems, Inc, proposed sale 868 shares at $319.95 during a trade that took place back on May 16 ’25, which means that PLUMMER FAMILY TRUST is holding shares at $277,716 based on the most recent closing price.
Stock Fundamentals for CDNS
Current profitability levels for the company are sitting at:
- 0.3 for the present operating margin
- 0.94 for the gross margin
The net margin for Cadence Design Systems, Inc stands at 0.22. The total capital return value is set at 0.19. Equity return is now at value 25.92, with 14.68 for asset returns.
Based on Cadence Design Systems, Inc (CDNS), the company’s capital structure generated 0.34 points at debt to capital in total, while cash flow to debt ratio is standing at 0.6. The debt to equity ratio resting at 0.52. The interest coverage ratio of the stock is 21.78.
Currently, EBITDA for the company is 1.66 billion with net debt to EBITDA at -0.18. When we switch over and look at the enterprise to sales, we see a ratio of 17.9. The receivables turnover for the company is 8.39for trailing twelve months and the total asset turnover is 0.54. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.07.
Conclusion
In conclusion, Cadence Design Systems, Inc (CDNS) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
