CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$270.88
-0.89 (-0.33%)
▼
5d:
-7.4%
30d:
-10.13%
90d:
-15.06%
HOLD
MODERATE Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: Apr 27, 2026
27d
Smart Money Distribution
CDNS is up 3.7% this week, but smart money is buying puts. Top strike: $230 2026-05-15 with 1,336 OI. Put ratio: 73% View Scanner →
Strength: 4.2/10
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CDNS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: CDNS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$458.33
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$284.58
4.8% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CDNS is currently trading at $270.88, which is considered oversold relative to its 30-day fair value range of $282.45 to $300.44. From a valuation perspective, the stock is trading at a discount (Forward PE: 28.8) compared to its historical average (49.1). Remarkably, the market is currently pricing in an annual earnings decline of 16.3% over the next few years. This pessimistic expectation contrasts with the company's recent 14.6% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CDNS is in a strong downtrend. The price is currently testing key support at $270.17. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CDNS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $371.68 (+37.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CDNS is in a strong downtrend. The price is currently testing key support at $270.17. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CDNS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $371.68 (+37.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$282.45 -
$300.44
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
Protect Your Profits
Holding CDNS? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 37.2% below Wall St target ($371.68)
- CAUTION: 5-day price weakness (-7.4%) - monitor closely
Fair Price Analysis
30-Day Fair Range
$282.45 -
$300.44
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$270.17
Resistance Level
$300.94
Current Trend
Strong Downtrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
28.77
Wall Street Target
$371.68
(+37.2%)
Revenue Growth (YoY)
6.2%
Earnings Growth (YoY)
14.6%
Profit Margin
20.9%
Valuation Discount vs History
-16.3% cheaper
PE vs Historical
28.8 vs 49.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-16.3%
(market-implied from PE analysis)
1-Year Target
$243.79
(-10%)
2-Year Target
$219.41
(-19%)
3-Year Target
$197.47
(-27%)
3-Yr Target (if PE normalizes)
(PE: 29→49)
$336.97
(+24%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 28.8, Growth: 96.3%)
$914.22
(+238%)
Base:
(SPY PE: 22.4, Growth: 96.3%)
$710.13
(+162%)
Bear:
(PE: 19.0, Growth: 96.3%)
$603.61
(+123%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (35x PE), but valuation improves significantly next year (29x PE) as earnings recover.
Forward PE: 34.97 | Forward EPS (Implied): $8.37
Bull Case
$353.22
(+21%)
Analyst growth 15.0%, PE expands to 36.7
Base Case
$292.52
(0%)
Market implied 0.0%, PE stable at 35.0
Bear Case
$223.78
(-24%)
Severe decline -15.0%, PE contracts to 31.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 28.8 to 49.1
Stabilization Target:
$462.24
(+70.6%)
PE Expansion Potential:
+70.6%
Share & Embed Analysis
Last updated: March 30, 2026 5:41 PM ET
Data refreshes hourly during market hours. Next update: 6:41 PM
Data refreshes hourly during market hours. Next update: 6:41 PM
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
2
Buys
17
Sells
Net
INSIDERS SELLING
Recent Transactions
Ita M Brennan
SELL
180 shares
2026-03-17
Paul Cunningham
SELL
1000 shares
2026-03-02
Ro Khanna
BUY
2026-02-24
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Advanced CDNS Option Strategies
Professional options setups generated by AI based on today's CDNS price and gamma walls.
