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How to buy Cadence Design Systems stock

Own Cadence Design Systems stock in just a few minutes.

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Cadence Design Systems, Inc is a software—application business based in the US. Cadence Design Systems shares (CDNS) are listed on the NASDAQ and all prices are listed in US Dollars. Cadence Design Systems employs 8,100 staff and has a trailing 12-month revenue of around USD$2.4 billion.

How to buy shares in Cadence Design Systems

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Cadence Design Systems Find the stock by name or ticker symbol: CDNS. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Cadence Design Systems reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Cadence Design Systems, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Cadence Design Systems. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Cadence Design Systems share price

Use our graph to track the performance of CDNS stocks over time.

Cadence Design Systems shares at a glance

Information last updated 2020-09-24.
52-week rangeUSD$51.39 - USD$117.59
50-day moving average USD$107.1563
200-day moving average USD$89.9923
Wall St. target priceUSD$110.68
PE ratio 27.4711
Dividend yield N/A (0%)
Earnings per share (TTM) USD$3.636

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Cadence Design Systems stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Cadence Design Systems under- or over-valued?

Valuing Cadence Design Systems stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cadence Design Systems's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cadence Design Systems's P/E ratio

Cadence Design Systems's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Cadence Design Systems shares trade at around 27x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

Cadence Design Systems's PEG ratio

Cadence Design Systems's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.3543. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cadence Design Systems's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Cadence Design Systems's EBITDA

Cadence Design Systems's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$663.1 million.

The EBITDA is a measure of a Cadence Design Systems's overall financial performance and is widely used to measure a its profitability.

Cadence Design Systems financials

Revenue TTM USD$2.4 billion
Operating margin TTM 21.83%
Gross profit TTM USD$2.1 billion
Return on assets TTM 10.05%
Return on equity TTM 55.14%
Profit margin 41.74%
Book value $8.094
Market capitalisation USD$28.5 billion

TTM: trailing 12 months

Shorting Cadence Design Systems shares

There are currently 3.0 million Cadence Design Systems shares held short by investors – that's known as Cadence Design Systems's "short interest". This figure is 6.5% down from 3.2 million last month.

There are a few different ways that this level of interest in shorting Cadence Design Systems shares can be evaluated.

Cadence Design Systems's "short interest ratio" (SIR)

Cadence Design Systems's "short interest ratio" (SIR) is the quantity of Cadence Design Systems shares currently shorted divided by the average quantity of Cadence Design Systems shares traded daily (recently around 1.4 million). Cadence Design Systems's SIR currently stands at 2.21. In other words for every 100,000 Cadence Design Systems shares traded daily on the market, roughly 2210 shares are currently held short.

However Cadence Design Systems's short interest can also be evaluated against the total number of Cadence Design Systems shares, or, against the total number of tradable Cadence Design Systems shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cadence Design Systems's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Cadence Design Systems shares in existence, roughly 10 shares are currently held short) or 0.0126% of the tradable shares (for every 100,000 tradable Cadence Design Systems shares, roughly 13 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cadence Design Systems.

Find out more about how you can short Cadence Design Systems stock.

Cadence Design Systems's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cadence Design Systems.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Cadence Design Systems's total ESG risk score

Total ESG risk: 13.67

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cadence Design Systems's overall score of 13.67 (as at 08/01/2020) is excellent – landing it in it in the 12nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Cadence Design Systems is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Cadence Design Systems's environmental score

Environmental score: 1.84/100

Cadence Design Systems's social score

Social score: 6.48/100

Cadence Design Systems's governance score

Governance score: 3.54/100

Environmental, social, and governance (ESG) summary

Cadence Design Systems, Inc was last rated for ESG on: 2020-08-01.

Total ESG score 13.67
Total ESG percentile 11.76
Environmental score 1.84
Social score 6.48
Governance score 3.54

Cadence Design Systems share dividends

We're not expecting Cadence Design Systems to pay a dividend over the next 12 months.

Have Cadence Design Systems's shares ever split?

Cadence Design Systems's shares were split on a 2:1 basis on 17 November 1997. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cadence Design Systems shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cadence Design Systems shares which in turn could have impacted Cadence Design Systems's share price.

Cadence Design Systems share price volatility

Over the last 12 months, Cadence Design Systems's shares have ranged in value from as little as $51.39 up to $117.59. A popular way to gauge a stock's volatility is its "beta".

CDNS.US volatility(beta: 1.08)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Cadence Design Systems's is 1.0764. This would suggest that Cadence Design Systems's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Cadence Design Systems overview

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design products; physical implementation tools, including place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system interconnect design products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products consisting of pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models for use in system-level verification to model correct behavior of full systems interacting with their environments. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. Cadence Design Systems, Inc. was founded in 1988 and is headquartered in San Jose, California.

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