Cadence Design Systems (CDNS.US) Price Target 2026/2027: 20% Upside – Rating and Stock Analysis

339,97
0,86%
Price history for Cadence Design Systems (CDNS.US) – stock price at 339.97 $, August 2026
Cadence Design Systems stock price – price development 2026. Updated Aug 6, 2026.
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Cadence Design Systems Price Target 2026: Analysts See 19% Upside

The average price target for Cadence Design Systems is $403.67. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 18,74% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is Cadence Design Systems overvalued or undervalued?

Cadence Design Systems is currently undervalued with a gap of 18.7% relative to the price target.


The current price is $339.97, which places Cadence Design Systems in the undervalued category. The stock is considered undervalued when the price is below $363.30, and overvalued when the price exceeds $444.04.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Cadence Design Systems, the fair value range lies between $363.30 and $444.04.


See the full price target analysis for Cadence Design Systems →

Analyst Ratings for Cadence Design Systems stock in 2026: Strong Buy

25 analysts cover Cadence Design Systems. There is broad agreement on a positive view — 88% recommend buying. The average price target is $403.67, which gives an upside of 18.7% from the current price.

Consensus: Strong Buy (4.56/5)
Strong Buy
17 (68%)
Buy
5 (20%)
Hold
3 (12%)
Strong Sell Sell Hold Buy Strong Buy
4.56 out of 5 based on 25 analysts

About Cadence Design Systems – Software - Application

Cadence Design Systems, Inc. sælger software og hardware, som virksomheder bruger til at designe integrerede kredsløb (IC'er) og chips globalt. De tjener primært penge på licenser til deres designværktøjer. Cadence er især kendt for deres verifikationsplatforme, der hjælper med at teste chips, før de produceres. For eksempel tilbyder de JasperGold til formel verifikation og Palladium til virksomhedsemulering. Derudover udvikler Cadence Design Systems værktøjer til digital IC-design, som Genus og Innovus, der styrer hele processen fra logisk syntese til fysisk implementering. Virksomheden opererer på tværs af flere markeder og leverer løsninger til både store og små teknologivirksomheder over hele verden. Read more about the company

Key Figures for Cadence Design Systems

$ 93,8B Market cap
$ 5,8B Revenue
Software - Application Industry
66.66 P/E
16.07 P/S
13.65 P/B
USA Listed on exchange

What kind of stock is Cadence Design Systems?

Growth stock

Cadence Design Systems is classified as a growth stock with quarterly earnings growth of 125.4% and strong long-term momentum of 0.0%.

Score Overview for Cadence Design Systems

💰 Value Score 11/100 (Very Low)
⭐ Quality Score 68/100 (High)
🚀 Momentum Score 47/100 (Neutral)
📊 Total Score 42/100

📈 Valuation

Cadence Design Systems trades at a P/E ratio of 66.7, which is above the market average. The forward P/E is 42.4 (36% lower), which suggests the market expects rising earnings. The P/S ratio is 16.1 (high — the market pays a premium for the revenue). The P/B ratio is 13.7. The PEG ratio is 3.11 — above 2.0 suggests the stock is expensive relative to its growth rate.

💵 Profitability & Growth

Cadence Design Systems has a profit margin of 23.6% (excellent) and an operating margin of 28.6%. Return on equity (ROE) is 23.2% — excellent return on equity. Return on assets (ROA) is 10.6%. The latest quarterly earnings grew 125.4% year over year — strong growth.

🏦 Financial Health

The Piotroski score is 5 out of 9 — average financial health. Altman Z2 is 5.24 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 92.0% — low debt, a solid balance sheet.

🚀 Momentum & Short Interest

Short interest is 2.26%.

Insider Trading in Cadence Design Systems 2026: The Signal Is negative

In 2026, insiders at Cadence Design Systems have made 20 transactions, all of which were sales. On a net basis, insiders took 47,302,760 $ out of the stock. Active insiders include TENG CHIN-CHI, Cunningham Paul, PLUMMER JAMES D and others. In the short term (last 3 months), the insider signal is negative.

Short-Term Signal (3 months): Negative

Insiders have exclusively sold shares over the last 3 months.

Over the last 3 months: 0 purchases and 14 sales. A net 36,362,616 $ out of the stock.

Long-Term Signal (all transactions): Negative

Insiders have exclusively sold shares in the recent period. This can suggest management sees limited opportunity.

Across the last 20 transactions: 0 purchases and 20 sales. A net 47,302,760 $ out of the stock.

Latest sale: TENG CHIN-CHI sold 1,000 shares at 345 $ each on 2026-07-22.

Who is selling: TENG CHIN-CHI, Cunningham Paul, PLUMMER JAMES D, Brennan Ita M, DEVGAN ANIRUDH and others.

Latest Insider Trades in Cadence Design Systems (2026)

The table shows the last 20 reported insider transactions in Cadence Design Systems. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-07-22 TENG CHIN-CHI Sell 1,000 345 345,170
2026-07-15 Cunningham Paul Sell 1,000 383 383,360
2026-06-22 TENG CHIN-CHI Sell 1,000 391 390,920
2026-06-15 Cunningham Paul Sell 1,000 391 391,000
2026-06-11 PLUMMER JAMES D Sell 1,511 381 576,205
2026-06-10 Brennan Ita M Sell 21 399 8,372
2026-06-02 DEVGAN ANIRUDH Sell 25,005 415 10,377,075
2026-06-01 Scannell Paul Sell 7,081 394 2,789,277
2026-06-01 DEVGAN ANIRUDH Sell 26,821 395 10,594,295
2026-05-22 TENG CHIN-CHI Sell 1,000 381 380,760

Who is buying and selling Cadence Design Systems shares in 2026?

The following insiders have sold shares: TENG CHIN-CHI, Cunningham Paul, PLUMMER JAMES D, Brennan Ita M, DEVGAN ANIRUDH and others. In total, 47,302,760 $ was sold across 20 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

Cadence Design Systems Short Selling 2026: 2.3% Sold Short

Moderate short interest: 2.3% of the free float
Short % of free float
2.3%
Assessment
Moderate short interest
Short squeeze risk
Low
Data source
SEC
Updated daily
The stock has a moderate share of short selling. Between 2-5% of the freely traded shares are sold short, which is within the normal range for most stocks.

Data is updated daily based on official filings with the SEC.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
2.3%

When Does Cadence Design Systems Report Earnings?

The next earnings date for Cadence Design Systems is not yet available. Check the company's investor calendar for more information.



Technical Analysis of Cadence Design Systems 2026 – Signal: Hold

Overall Technical Signal: Hold

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.

Technical analysis of Cadence Design Systems (CDNS.US) – RSI 42, MACD negative (bearish), daily candlestick chart August 2026
Cadence Design Systems technical analysis – candlestick chart with RSI and MACD. Updated Aug 6, 2026.

Trend Analysis of Cadence Design Systems, Inc

Cadence Design Systems, Inc is in a short-term downtrend. The price of $337.07 is 3.2% below the 20-day average ($348.11). Medium term, the picture is negative: the price is 8.9% below the 50-day average ($369.95). Long term, the stock is 2.8% above the 200-day average ($327.83), which confirms a long-term uptrend.

Golden Cross: The 50-day average (369.95) is above the 200-day average (327.83), which is a classic bullish signal for Cadence Design Systems, Inc.

Is Cadence Design Systems, Inc overbought or oversold?

Cadence Design Systems, Inc has an RSI of 42.3. The stock sits in the lower part of the neutral zone, which points to weak momentum without being oversold.

MACD Analysis for Cadence Design Systems, Inc

Daily MACD: MACD is negative (-9.313), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is above the signal line (-9.706) by 0.393, which suggests the negative momentum is fading – a potential trend reversal could be ahead.

Weekly MACD: MACD5 is positive (10.385), which indicates a broader bullish long-term trend. MACD5 is below the signal line (13.800) by 3.415, which suggests the long-term momentum is fading – the positive trend could come under pressure.

Overall MACD assessment: The daily and weekly MACD give conflicting signals. The long-term trend is bullish, but the short-term trend is bearish. Daily momentum is rising, though, which could suggest the pullback is over.

Risk Profile for Cadence Design Systems, Inc

Cadence Design Systems, Inc has an annual standard deviation of 39.5%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Cadence Design Systems, Inc

Trend: Neutral/mixed.

MACD trend (zero line): Daily bearish (-9.313). Weekly bullish (10.385).

MACD momentum (signal): Daily rising. Weekly falling.

RSI: 42.3 – neutral.

Technical signal: Hold

The signals are mixed – trend and MACD point in different directions. Wait until MACD crosses the zero line in the direction of the trend before acting.

Frequently Asked Questions About Cadence Design Systems stock in 2026

Should you buy Cadence Design Systems stock now?
The technical signal for Cadence Design Systems is currently NEUTRAL. Cadence Design Systems trades at $339.97 as of 8/6/2026. The overall technical signal is: Hold. The technical analysis shows the following: MACD is negative (bearish trend) at -9.313 with rising momentum (signal: -9.706); RSI is at 42.3 (neutral zone); the stock is in a short-term downtrend (price below the 20-day average); the analyst price target of $403.67 points to 18.7% upside. This is a technical observation based on current data, not investment advice.
What is the price target for Cadence Design Systems stock?
The average analyst price target for Cadence Design Systems is $403.67. The current price is $339.97, which gives an upside of 18.7%. Based on this, the stock is considered undervalued. The fair value range (±10% of the price target) is between $363.30 and $444.04.
Is Cadence Design Systems a dividend stock?
No, Cadence Design Systems does not currently pay a dividend to shareholders. The company reinvests its profits in growth instead of paying dividends.
What is the risk of Cadence Design Systems stock?
Cadence Design Systems is rated as a stock with moderate risk. the annual standard deviation is 39.5%, which classifies the stock as moderate risk.
Is Cadence Design Systems overvalued?
No, Cadence Design Systems is considered undervalued based on the analyst price target (18.7% upside). Cadence Design Systems has the following valuation ratios: a P/E ratio of 66.7 (highly valued), a P/S ratio of 16.1, a P/B ratio of 13.7. The analyst price target suggests that the stock is undervalued by 18.7%.
Is Cadence Design Systems overbought?
No, Cadence Design Systems is not overbought. RSI is at 42.3 (neutral zone). The technical indicators show: RSI is at 42.3 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 2.3% below the 20-day average (short-term downtrend). In addition, MACD is negative, but momentum is rising (possible trend reversal).
When is the next Cadence Design Systems earnings report?
The date of the next earnings report for Cadence Design Systems has not been published yet. Check the company's investor calendar for updates.
Is Cadence Design Systems shorted?
Yes, Cadence Design Systems is shorted with 2.3% of the free float sold short. This is a moderate level of short selling, within the normal range for most stocks. Data is updated daily based on official filings with the SEC.
Are insiders buying Cadence Design Systems stock?
No, insiders are not buying Cadence Design Systems shares – they are net sellers. Over the last 3 months, insiders have made 0 purchases and 14 sales. On a net basis, 36,362,616 $ worth of shares were sold. Across the last 20 reported transactions, the split is 0 purchases and 20 sales, with a net 47,302,760 $ sold. Active sellers include TENG CHIN-CHI, Cunningham Paul, PLUMMER JAMES D and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is Cadence Design Systems a good stock?
Based on our total score, Cadence Design Systems is rated as a mediocre stock with a total score of 42 out of 100. The stock scores around average on value, quality and momentum – it sits near the median in our database. The score is made up of Value: 11/100, Quality: 68/100, Momentum: 47/100. In addition: analysts see 18.7% upside to the price target; technical signal: Hold. Whether Cadence Design Systems is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Cadence Design Systems stock?
The outlook for Cadence Design Systems based on current data: the average analyst price target is $403.67 (+18.7%); the P/E ratio is 66.7 (high – the market expects growth). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Cadence Design Systems stock falling?
Cadence Design Systems is falling right now. The technical indicators show: the price is 2.3% below the 20-day average; insiders have mostly been selling the stock recently. For the latest context, see our technical analysis, insider section and news overview above.
How high can Cadence Design Systems go?
The average analyst price target for Cadence Design Systems is $403.67, which corresponds to a potential gain of 18.7% from the current price of $339.97. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Cadence Design Systems fall?
We lack enough history to give a specific floor for Cadence Design Systems. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Cadence Design Systems do?
Cadence Design Systems, Inc. sælger software og hardware, som virksomheder bruger til at designe integrerede kredsløb (IC'er) og chips globalt. De tjener primært penge på licenser til deres designværktøjer. Cadence er især kendt for deres verifikationsplatforme, der hjælper me... The company belongs to the Teknologi sector, more specifically the Software - Application industry, is headquartered in USA, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Cadence Design Systems as an investment.
Did Cadence Design Systems raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Cadence Design Systems. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history and the news overview above.
Is Cadence Design Systems making money or losing money?
Yes, Cadence Design Systems is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 23.6% — which is excellent. The operating margin (profit before interest and taxes) is 28.6%. At a P/E ratio of 66.7, you currently pay 66.7 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Cadence Design Systems go bankrupt?
The bankruptcy risk of Cadence Design Systems is rated as low. Altman Z2 (a model for assessing financial distress) is 5.24 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 5 — which is average. Debt relative to equity is 92% (moderate). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Cadence Design Systems have a lot of debt?
Cadence Design Systems has moderate debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 92%. For the teknologi sector, 80-150% counts as a typical level. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Cadence Design Systems service its debt? Can service its debt without problems — the interest coverage ratio (how many times earnings can cover interest payments) is 11.7x, and net debt equals 0.5 years of earnings (EBITDA).