CDNS Price Prediction Next Week
Analysis and Insights
Technical Analysis:
Cadence Design Systems (CDNS) has shown mixed technical signals. The stock closed at $258.70 on March 19, 2025, with a 1.9% increase, outperforming broader market indices. However, it has declined 15.49% over the past month. The Relative Strength Index (RSI) for CDNS is 52.69, indicating a neutral position, neither overbought nor oversold. The MACD is currently negative, suggesting bearish momentum.
Fibonacci Levels:
The Fibonacci levels for CDNS are as follows:
- Pivot Point: 248.51
- Resistance Levels: 262.59, 271.29, 285.37
- Support Levels: 234.43, 225.73, 211.65
The stock is currently testing the first resistance level at 262.59. A break above this level could lead to a test of the next resistance at 271.29. Conversely, a failure to breach this level may result in a decline to the support levels.
Fundamental Analysis:
CDNS reported strong Q4 earnings, with revenue up 27% year-over-year, driven by robust demand in its core EDA and IP segments. The company also reported a record backlog of $6.8 billion, indicating strong future revenue visibility. However, the guidance for FY2025 was slightly below analyst expectations, which may weigh on the stock in the short term.
Insider and Institutional Activity:
There has been significant insider selling activity, with all 38 insider trades in the past six months being sales. This may indicate a lack of confidence among insiders. However, institutional investors have been net buyers, with 624 institutions increasing their positions compared to 679 that decreased theirs.
Analyst Sentiment:
Analysts have a mixed outlook on CDNS, with 5 buy ratings, 2 sell ratings, and the rest hold. The median price target is $325, suggesting upside potential from current levels.
News Sentiment:
Recent news highlights the company's strong earnings and growing demand for its AI-enhanced solutions. However, the soft guidance and insider selling activity have introduced some uncertainty.
Conclusion:
Based on the analysis, CDNS is expected to face resistance at the 262.59 level. If it breaks above this level, the stock could test the next resistance at 271.29. However, given the mixed technical indicators and the soft guidance, the stock may struggle to break out in the short term.
Prediction: The stock price of CDNS is expected to trade between $258.70 and $271.29 in the next trading week.
Recommendation: Sell or hold, with a target price of $258.70 and a stop-loss at $271.29.
CDNS Similar Chart Price Prediction
The price of CDNS is predicted to go up -4.83%, based on the high correlation periods with BELFB. The similarity of these two price pattern on the periods is 96.78%.
CDNS
BELFB
Down: -4.83%Similarity: 96.78%
CDNS Revenue Forecast
CDNS EPS Forecast
CDNS FAQs
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CDNS VS S&P500
Secular tailwinds in chip design such as 5G, Inernet of Things, AI/ML, and others should increase demand for EDA tools and support growth for Cadence.
The growing system design and analysis business enables a larger TAM for Cadence and serves an expanding system-level design market as SoCs and advanced packaging become more important.
Cadence is the market leader in analog EDA tools, holding over 80% of the market share for more than two decades, which we believe adds incremental stickiness to the firm's overall EDA portfolio.
CDNS Analyst's Forecast
Edward Yang
Oppenheimer
Sell
2025-03-19
Price Target
$225 → $200
Downside
-22.66%
Oppenheimer lowered the firm's price target on Cadence Design to $200 from $225 and keeps an Underperform rating on the shares. The firm notes Cadence has declined sharply since issuing disappointing 2025 guidance, but has rebounded 10% off lows. With the stock near its cautious price target, Oppenheimer reassessed its thesis and reaffirms that the challenges extend beyond a cyclical slowdown. Growth deceleration, AI-driven disruption, and valuation compression remain intact. While a further technical bounce is possible, moribund growth and onerous 60-turns 2025 price to earnings make sustained outperformance unlikely, the firm adds.
Joe Vruwink
Baird
Buy
2025-02-20
Price Target
$340 → $335
Upside
+24%
Blair Abernethy
Rosenblatt
Hold
2025-02-19
Price Target
$280 → $295
Upside
+7.65%
