CDNS – Cadence Design Systems, Inc.

Comprehensive Monthly Stock Report: Cadence Design Systems, Inc. (CDNS)

Publication Date: November 26, 2025

Company Overview

Cadence Design Systems, Inc. (CDNS), headquartered in San Jose, California, is a premier player within the technology sector, specializing in application software. Since its inception in 1987, Cadence has operated at the forefront of the semiconductor design industry, providing a diverse suite of software, hardware, and services that facilitate digital integrated circuit (IC) design and functional verification. Its innovative tools and solutions, including the Jasper and Xcelium platforms, are tailored to meet the rigorous demands of various sectors such as consumer electronics, 5G communications, automotive, aerospace, and life sciences.

With a strong operational foundation, Cadence generated approximately $5.21 billion in total revenue, reflecting a solid position within the market. The company’s commitment to delivering cutting-edge design tools underscores its potential for sustained growth, making it a compelling option for investors looking for exposure to advanced technology solutions.

52-Week Price Performance Analysis

Key Technical Insights

Over the past year, Cadence’s stock has exhibited a dynamic price movement characterized by a bullish trend that started at the beginning of 2025 and peaked from September to October. However, since that period, the stock has experienced a bearish reversal, resulting in notable fluctuations in its price action.

• Current Stock Price: $303.98
• 52-Week High: $376.45
• 52-Week Low: $221.56

The stock has encountered significant price levels that have acted as both support and resistance. During its upward rally, the price struggled to maintain above the $375 resistance level during late summer, leading to a sharp decline when it could not sustain that momentum. Currently, the stock is flirting with critical support around the $275 mark–a key level that held firm during March and April of this year.

Moving Averages: As of late November 2025, CDNS is trading below its 50-day moving average of $335.77, reinforcing a cautionary narrative in the short term. The flattening and subsequent decline of this moving average may signal waning momentum, urging traders to remain vigilant about potential bearish continuation patterns.

Actionable Insights

• Resistance Level: $375
• Support Level: $275
• Key Price Action: The recent decline below the 50-day moving average raises concerns about future price stability.

Investors may consider a cautious approach based on the bearish sentiment in the short term, particularly if the stock fails to reclaim higher levels in the upcoming sessions.

Financial Performance and Metrics

Cadence Design Systems demonstrated resilient financial performance in its most recent quarter, delivering robust results that underscore the company’s operational strength.

• Total Revenue: $5.21 billion
• EBITDA: Approximately $1.88 billion
• Adjusted EPS: $1.93 (17.7% increase Year-over-Year)

Management’s confidence is underscored by their revised full-year revenue outlook, projecting annual growth of approximately 14%, with expectations for total revenue to fall between $5.26 billion and $5.29 billion by year-end, accompanied by an adjusted EPS range of $7.02 to $7.08.

Additionally, the stock’s valuation is compelling considering its low short interest, with only about 0.0149% of float shares shorted, indicating limited bearish sentiment from investors. Such metrics emphasize a stable share structure conducive to potential liquidity and interest among investors.

Recent News and Developments

Cadence Design Systems has navigated a landscape marked by both positive developments and external market pressures.

1. Third-Quarter Report (October 27, 2025): The company reported a year-over-year revenue growth of 10.1% with an adjusted EPS that surged 17.7%. This substantial performance led management to enhance their growth projections, further boosting investor confidence.

2. Impact of Industry Peers: On September 10, 2025, shares fell by 8.3% following disappointing earnings from competitor Synopsys, which illuminated broader challenges linked to U.S.-China trade dynamics. Such developments have sparked caution within the semiconductor sector, but despite this, Cadence’s stock has notably outperformed the S&P 500 over the past year (37.6% vs. 17.3%).

3. Insider Activity (November 6, 2025): Senior Vice President Chin-Chi Teng sold 5,800 shares at approximately $324.94 each, further illustrating movements within the stock amid fluctuating market confidence.

Conclusion on Recent Developments

The juxtaposition of positive earnings with external pressures from competitors presents both opportunities and risks for Cadence. Investors may leverage these insights for strategic positioning.

Market Sentiment and Analyst Recommendations

The consensus among analysts regarding Cadence Design Systems is predominantly bullish, with a comprehensive average recommendation score of 1.6 (on a scale where lower values indicate stronger buy sentiments). This solid outlook encompasses input from 25 analysts, forming a robust consensus on the expectation of the stock’s future performance.

Analyst Price Targets

• Target High Price: $418.00
• Target Mean Price: $382.20
• Target Low Price: $225.00
• Current Price: $303.98

The disparity between the current trading price and the analysts’ target estimates suggests potential upside for investors, reinforcing the notion that Cadence remains an attractive investment opportunity in the face of recent volatility.

Overall Market Sentiment

The prevailing sentiment is guided by hopes of continued growth spurred by strong financial performance, coupled with relative investor confidence reflected in modest short interest levels. However, investors must remain cognizant of the prevailing bearish trends that could affect short-term performance.

Conclusion

Cadence Design Systems, Inc. offers a compelling investment proposition backed by solid fundamentals and growth projections that outweigh recent market hurdles. While the bearish sentiments in the short term call for caution, the company’s strong financial metrics, motivated management, and innovative products place it in a favorable position for long-term growth. Investors should remain vigilant, continuously assess market developments, and consider their strategic objectives when investing in this technology stalwart.

Metric	Value
Market Cap	$82.8b
Total Debt	$2.5b
Total Cash	$2.9b
Shares Outstanding	272.2m
Float Shares	271.1m