How to Buy Cadence Design Systems Stock
Cadence Design Systems Inc
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.
Cadence Design Systems stock last closed at $262.42, up 1.52% from the previous day, and has decreased 18.71% in one year. It has underperformed other stocks in the Software - Application industry by 0.04 percentage points. Cadence Design Systems stock is currently +14.05% from its 52-week low of $230.09, and -20.23% from its 52-week high of $328.99.
As of Mar 21, 2025, there are 274.11M CDNS shares outstanding. The market cap of CDNS is $71.93B. In the last 24 hours, 5.65M CDNS shares were traded.
How to Buy Cadence Design Systems Stock
Not sure how to invest in Cadence Design Systems stock? Here's how.
- Decide where to buy Cadence Design Systems stock: You need to pick an online brokerage, but don't worry - we've researched dozens of online stock brokerages and apps to help you figure out where to buy Cadence Design Systems stock.
- Create a brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've selected.
- Put funds into your brokerage account: Select your method of payment and add your info.
- Analyze Cadence Design Systems stock: The Cadence Design Systems ticker symbol is CDNS. Is Cadence Design Systems stock a good investment? Should you buy shares of CDNS? How do CDNS's underlying business fundamentals look? Do top analysts think Cadence Design Systems is a good buy? Why has CDNS's stock price moved recently? (Hint: Our stock market analysis tools can help you decide if CDNS is a good stock to buy).
- Place your CDNS buy order: Decide if you will purchase CDNS shares at the current market price or use a limit order to buy CDNS shares at a specific price.
- Keep an eye on your CDNS position: Create a watchlist to get the latest news on your position in Cadence Design Systems shares.
Step 1: Decide where to buy Cadence Design Systems stock
You will need a brokerage account to access the NASDAQ market and buy CDNS stock.
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Open eToro AccountStep 2: Create a brokerage account
Now that you've selected your brokerage, you'll need to fill out some personal information so you are able to buy CDNS stock today.
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- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal details to open your new trading account.
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Step 3: Put funds into your brokerage account
Now that you have opened your account on the best stock buying app, you can securely and quickly fund your account:
Watch the tutorial below if you need help depositing funds into your new brokerage account.
Step 4: Analyze Cadence Design Systems stock
Once you have selected the best place to buy Cadence Design Systems stock, it's critical to research their stock before you buy, so you truly comprehend the risk and upside.
Cadence Design Systems Metrics
Cadence Design Systems Due Diligence Score
WallStreetZen was created to help average investors do more accurate fundamental analysis in minutes instead of hours.
You can see all of the due diligence checks on CDNS's stock page.
Is CDNS stock overvalued?
Investors use many financial metrics, analyses, models, and charts to gauge CDNS's fair value.
Using relative valuations ratios:
- CDNS may be undervalued based on its P/E ratio of 67.46x, relative to Software - Application industry P/E ratio of 127.48x
- CDNS could be overvalued based on its P/B ratio of 15.39x, relative to Software - Application industry P/B ratio of 6.79x
- CDNS may be overvalued based on its PEG ratio of 3.19x
You can do additional valuation analysis on CDNS's stock here.
CDNS Financials at a glance
Pros:
- There are more short-term assets than short-term liabilities on the CDNS balance sheet.
- There are more short-term assets than long-term liabilities on the CDNS balance sheet.
- CDNS earnings of $1.47B is not sufficient to cover its interest payments.
- CDNS's operating cash flow of $1.26B allows it to safely service it's debt of $2.48B.
Cons:
- CDNS profit margin has gone down from 25.5% to 22.7% in the past year.
- CDNS has a relatively high debt to equity ratio of 0.92.
- Total CDNS debt is higher than 5 years ago, relative to shareholder equity.
Is it a good time to buy Cadence Design Systems stock, according to analysts?
Out of 11 Equities analysts who give ratings on CDNS, the consensus analyst rating on CDNS is a Strong Buy
Please note that analyst ratings are not stock recommendations, nor are they financial advice.
Most Recent CDNS Analyst Forecasts
Charles Shi, a bottom 13% analyst from Needham reiterates CDNS with a buy rating and maintains their CDNS price target from $325.00 to $325.00, on Feb 19, 2025.
Clarke Jeffries, a top 24% analyst from Piper Sandler maintains CDNS with a strong buy rating and raises their CDNS price target from $318.00 to $328.00, on Feb 19, 2025.
Piper Sandler's Clarke Jeffries raised their price target on Cadence Design Systems (NASDAQ: CDNS) by 3.1% from $318 to $328 on 2025/02/19. The analyst maintained their Strong Buy rating on the stock.
Cadence Design Systems reported its Q4 and FY 2024 earnings.
While management's $5.18B revenue guide may look like a bad sign at first glance, Jeffries said the estimated low-teens increase outside of China is a positive sign.
Given that Cadence Design Systems' backlog had grown by 13% at year's end, the analyst predicted strong growth in 1H 2025, with incremental margins remaining in the low 50s.
Earnings Report
Cadence Design Systems reported:
For Q4 2024:
- EPS of $1.88, which beat the Zacks Consensus Estimate of $1.82 and, by 36.2%, Q4 2023’s $1.38.
- Revenue of $1.36B, which beat the Zacks Consensus Estimate by 0.60% and, by 27%, Q4 2023’s $1.07B.
For FY 2024:
- EPS of $5.97, up 15.9% Y/Y.
- Revenue of $4.64B, up 13.5% Y/Y.
For FY 2025, management guided:
- EPS of $6.65 to $6.75.
- Revenue of $5.14B to $5.22B.
President & CEO Anirudh Devgan commented: “Cadence delivered exceptional results in Q4, capping off a strong 2024 with 13.5% revenue growth and 42.5% non-GAAP operating margin for the year.
“Our momentum continues to build as we exited 2024 with record bookings and record backlog. Cadence is very well positioned to benefit from the various phases of AI, including the current AI infrastructure buildout, applying AI to our products, and expanding into new markets such as life sciences.”
Senior Vice President & CFO John Wall added, “We had a strong finish to 2024, driven by broad-based strength across all our businesses.
“I’m pleased with our record year-end backlog of $6.8B and cRPO of $3.4B, and I look forward to building on that strength in 2025.”
Lachlan Brown, a bottom 22% analyst from Redburn Atlantic initiates coverage on CDNS with a strong buy rating and announces their CDNS price target of $350.00, on Jan 13, 2025.
Siti Panigrahi, a bottom 7% analyst from Mizuho maintains CDNS with a buy rating and raises their CDNS price target from $325.00 to $350.00, on Dec 13, 2024.
Joseph Quatrochi, a top 9% analyst from Wells Fargo initiates coverage on CDNS with a strong buy rating and announces their CDNS price target of $350.00, on Nov 22, 2024.
You can dig deeper into what analysts are projecting on the Cadence Design Systems stock forecast page.
CDNS Momentum
CDNS Revenue
Last year, CDNS earnings were $1.06B. During the last 5 year, CDNS's earnings have increased by 1.45% per year. This was slower than the Software - Application industry average of 74.88%.
Last year, CDNS revenue was $4.64B. During the last five year, CDNS's revenue has gone up by 14.72% per year. This was slower than the Software - Application industry average of 22.23%.
Learn more about CDNS's earnings and revenue performance here.
What are CDNS executives and large shareholders up to?
In the last year, insiders at CDNS have sold more shares than they have bought.
Paul Cunningham, Sr. Vice President of CDNS, was the latest CDNS insider to sell. They sold $949,009.20 worth of CDNS stock on Mar 17, 2025.
Learn more about who owns CDNS shares here.
Can I get consistent income from CDNS stock?
No, Cadence Design Systems doesn't provide an income stream by paying out dividends.
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Step 5: Place your CDNS buy order
You have two main options:
- Market order: A market order is an order to buy or sell a security at the best price on the market.
Market orders are generally sufficient. - Limit order: A limit order is an order to buy or sell a security at a specific price (or better).
If you want to ensure you're buying or selling at an exact dollar amount, use a limit order.
Press the Open Trade button and eToro will execute your order.
If you want additional help with buying stocks on eToro, click the helpful video below:
Step 6: Keep an eye on your CDNS position
Now that you own some CDNS shares, you'll want to keep up with your investment.
Create a watchlist to track your CDNS stock.
CDNS Feed
How to Buy Stock in Cadence Design Systems
To reiterate, here are the 6 steps for buying Cadence Design Systems stock:
- Decide where to buy Cadence Design Systems stock
- Create a brokerage account
- Put funds into your brokerage account
- Analyze Cadence Design Systems stock
- Place your CDNS buy order
- Keep an eye on your CDNS position
If you are looking for a online brokerage, eToro is our favorite venue.
Get Started with eToro TodayIf you would like to watch your investment in Cadence Design Systems, get started below.
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