Is CDNS stock a Buy, Sell, or Hold?

Based on our analysis, CDNS is currently a HOLD with moderate confidence. 📊 HOLD: CDNS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

What is the fair value of CDNS stock?

Our analysis estimates the fair value range for CDNS to be between $283.57 and $341.84. The current price is $362.70.

What is the analyst price target for CDNS?

The average Wall Street analyst price target for CDNS is $379.46. This implies a potential upside of 4.6% from current levels.

CDNS Stock Analysis: Buy, Sell, or Hold?

CDNS - Cadence Design Systems

SERVICES-PREPACKAGED SOFTWARE

$362.70

5.80 (1.63%) ▲

5d: +6.38%

30d: +29.07%

90d: +27.93%

HOLD

MODERATE Confidence

Protect Your CDNS Gains

Analysis Updated: May 8, 2026 12:00 AM ET

Earnings: Apr 27, 2026 0d

Smart Money Distribution

CDNS is up 5.7% this week, but smart money is buying puts. Top strike: $300 2026-06-18 with 13,176 OI. Put ratio: 65% View Scanner →

Strength: 9.0/10

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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.

See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

Adjust Growth Assumption: 25.0%

0% (Stagnation) 50% (Hyper Growth)

EST. PRICE IN 2031

$456.69

Based on 14.5% avg growth

INTRINSIC VALUE TODAY

$283.57

Trading above historical range

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.

View Full DCF Model

In-depth Analysis How we analyze

Valuation Analysis: CDNS is currently trading at $362.70, which is considered extended relative to its 30-day fair value range of $283.57 to $341.84. From a valuation perspective, the stock is trading at a discount (Forward PE: 38.7) compared to its historical average (44.9). Remarkably, the market is currently pricing in an annual earnings decline of 4.9% over the next few years. This pessimistic expectation contrasts with the company's recent 23.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, CDNS is showing sideways momentum. The price is approaching resistance at $365.01. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: CDNS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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 EXTENDED

Historical Trading Range $283.57 - $341.84

Company Quality Score 64/100 (BUY)

Volume Confirmation HIGH

Confidence Score 52.4%

Protect Your Profits

CDNS is technically overbought (RSI 72). Consider hedging now to protect against a potential pullback while keeping your upside.

View Profit Protection Plan

All Signals

BEARISH: Price extended above range (+6.1% above its trading range)
BULLISH: Strong technical setup (60/100)
BULLISH: High volume confirmation
NEUTRAL: Near Wall St target ($379.46)

Trading Range Analysis

30-Day Trading Range $283.57 - $341.84

Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $315.51

Resistance Level $365.01

Current Trend Sideways

Technical data as of May 8, 2026

Fundamental Context

Forward P/E (Next Year Est.) 38.66

Wall Street Target $379.46 (+4.6%)

Revenue Growth (YoY) 18.7%

Earnings Growth (YoY) 23.0%

Profit Margin 21.2%

Valuation Discount vs History -4.9% cheaper

PE vs Historical 38.7 vs 44.9 CHEAP

Market-Implied Price Targets If current PE multiple persists

Implied Growth (YoY): -4.9% (market-implied from PE analysis)

1-Year Target $344.93 (-5%)

2-Year Target $328.03 (-10%)

3-Year Target $311.95 (-14%)

3-Yr Target (if PE normalizes) (PE: 39→45) $362.26 (0%)

3-Year Scenarios Using analyst projected EPS growth

Bull: (PE: 38.7, Growth: 108.7%) $1224.11 (+238%)

Base: (SPY PE: 21.9, Growth: 108.7%) $694.62 (+92%)

Bear: (PE: 18.6, Growth: 108.7%) $590.42 (+63%)

📈 Valuation based on Current Earnings

RECOVERY PLAY: Stock looks expensive now (45x PE), but valuation improves significantly next year (39x PE) as earnings recover.

Forward PE: 44.64 | Forward EPS (Implied): $8.12

Bull Case $437.96 (+21%)

Analyst growth 15.0%, PE expands to 46.9

Base Case $362.70 (0%)

Market implied 0.0%, PE stable at 44.6

Bear Case $277.47 (-24%)

Severe decline -15.0%, PE contracts to 40.2

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 38.7 to 44.9

Stabilization Target: $421.19 (+16.1%)

PE Expansion Potential: +16.1%

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Last updated: May 10, 2026 3:28 PM ET
Data refreshes hourly during market hours. Next update: 4:28 PM

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Insider Activity (6 Months)

Buys

Sells

Net

INSIDERS SELLING

Recent Transactions

John M Wall SELL 21500 shares 2026-04-16

Paul Cunningham SELL 1000 shares 2026-04-01

Ita M Brennan SELL 180 shares 2026-03-17

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Advanced CDNS Option Strategies

Professional options setups generated by AI based on today's CDNS price and gamma walls.

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