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How to buy Cadence Design Systems (CDNS) stocks

Learn how to easily invest in Cadence Design Systems stocks.

Cadence Design Systems is a software-application business based in the US. Cadence Design Systems stocks (CDNS.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $186.05 – an increase of 2.31% over the previous week. Cadence Design Systems employs 9,300 staff and has a trailing 12-month revenue of around $3.3 billion.

How to buy stocks in Cadence Design Systems

  1. Compare stock trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – CDNS – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of stocks with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Cadence Design Systems stock price (NASDAQ:CDNS)

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

Cadence Design Systems shares at a glance

Information last updated 2022-09-25.
Latest market close$164.69
52-week range$132.32 - $194.97
50-day moving average $175.75
200-day moving average $160.95
Wall St. target price$196.31
PE ratio 57.9029
Dividend yield $0 (0%)
Earnings per share (TTM) $2.78

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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.

Cadence Design Systems price performance over time

Historical closes compared with the close of $164.69 from 2022-09-29

1 week (2022-09-23) 2.31%
1 month (2022-08-30) -5.48%
3 months (2022-06-30) 9.77%
6 months (2022-03-30) 0.85%
1 year (2021-09-30) 8.75%
2 years (2020-09-30) 54.45%
3 years (2019-09-30) 149.23%
5 years (2017-09-29) 317.25%

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 58x. In other words, Cadence Design Systems shares trade at around 58x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

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 2.0351. 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 $1.1 billion.

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 $3.3 billion
Operating margin TTM 30.33%
Gross profit TTM $2.7 billion
Return on assets TTM 14.67%
Return on equity TTM 30.15%
Profit margin 23.61%
Book value $9.59
Market capitalisation $44.1 billion

TTM: trailing 12 months

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: 15.04

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cadence Design Systems's overall score of 15.04 (as at 01/01/2019) is excellent – landing it in it in the 9th 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: 3.4/100

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 $132.32 up to $194.97. A popular way to gauge a stock's volatility is its "beta".

CDNS.US volatility(beta: 1.17)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 1.1694. 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 enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. 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 design and analysis 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 comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols.

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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