CDNS
Cadence Design Systems Inc. Technology - EDA Software Investor Relations →
Cadence Design Systems Inc. (CDNS) closed at $283.90 as of 2026-03-20, trading 9.7% above its 200-week moving average of $258.81. The stock is currently moving closer to the line, down from 11.2% last week. The 14-week RSI sits at 34, indicating neutral momentum.
Trading volume is running at 1.1x of its 14-week average, which is in the normal range. The balance between buying and selling volume (0.87 ratio) is neutral — neither side is clearly dominating.
Over the past 1975 weeks of data, CDNS has crossed below its 200-week moving average 17 times. On average, these episodes lasted 33 weeks. The average one-year return after crossing below was -15.4%, suggesting these dips have not historically been reliable buying opportunities for this stock.
With a market cap of $78.3 billion, CDNS is a large-cap stock. The company generates a free cash flow yield of 1.9%. Return on equity stands at 21.9%, indicating strong profitability. The stock trades at 14.1x book value.
CDNS passes our Buffett quality screen: high return on equity, low debt, and positive free cash flow.
Over the past 33.2 years, a hypothetical investment of $100 in CDNS would have grown to $5774, compared to $2683 for the S&P 500. That represents an annualized return of 13.0% vs 10.4% for the index — confirming CDNS as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.
Free cash flow has been growing at a 12.4% compound annual rate, with 4 consecutive years of positive cash generation.
Business Health
Annual financials — how the underlying business has performed over the past several years.
Cash Flow Free cash flow & net income ($M)
Revenue Annual revenue ($M) — business growth proxy
Total Debt Balance sheet debt ($M)
ROIC Return on invested capital (%)
FCF Yield Free cash flow / market cap (%) — Yartseva signal
Gross Margin Pricing power & competitive moat (%)
Shares Outstanding Buybacks vs dilution (millions)
Growth of $100: CDNS vs S&P 500
Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.
What Happens After CDNS Crosses Below the Line?
Across 16 historical episodes, buying CDNS when it crossed below its 200-week moving average produced an average return of -28.1% after 12 months (median -35.0%), compared to -9.9% for the S&P 500 over the same periods. 21% of those episodes were profitable after one year. After 24 months, the average return was -14.8% vs -6.7% for the index.
Each line shows $100 invested at the moment CDNS crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.
Historical Touches
CDNS has crossed below its 200-week MA 17 times with an average 1-year return of +-15.4% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| May 1988 | May 1988 | 1 | 1.1% | +130.0% | +16934.0% |
| Jul 1991 | Aug 1991 | 5 | 4.9% | +20.0% | +7761.8% |
| Sep 1991 | Oct 1991 | 1 | 3.0% | -8.3% | +7584.5% |
| Jun 1992 | Dec 1992 | 24 | 26.4% | -31.0% | +6368.6% |
| Jan 1993 | Jan 1993 | 2 | 2.9% | -47.9% | +6094.2% |
| Feb 1993 | Oct 1994 | 86 | 60.6% | -38.0% | +6056.9% |
| Apr 1999 | Dec 1999 | 35 | 54.2% | +24.5% | +2083.8% |
| Feb 2000 | Mar 2000 | 4 | 15.0% | +22.0% | +1201.5% |
| Mar 2000 | Sep 2000 | 24 | 38.5% | -10.4% | +1276.5% |
| Oct 2000 | Oct 2000 | 1 | 0.5% | -13.8% | +1176.0% |
| Mar 2001 | Oct 2001 | 33 | 31.7% | +18.7% | +1394.2% |
| Dec 2001 | Jan 2002 | 6 | 6.8% | -47.4% | +1172.0% |
| Feb 2002 | Mar 2002 | 2 | 5.9% | -50.9% | +1263.6% |
| Apr 2002 | Dec 2003 | 91 | 53.5% | -50.2% | +1288.3% |
| Jan 2004 | Jul 2005 | 78 | 32.9% | -21.4% | +1613.3% |
| Nov 2007 | Dec 2007 | 2 | 0.9% | -81.2% | +1607.2% |
| Dec 2007 | Feb 2011 | 162 | 82.6% | -76.3% | +1649.2% |
| Average | 33 | — | +-15.4% | — |
Frequently Asked Questions
Is CDNS below its 200-week moving average?
No. Cadence Design Systems Inc. (CDNS) is currently 9.7% above its 200-week moving average of $258.81. It would need to fall to $258.81 to cross below the line.
What is CDNS's 200-week moving average price?
Cadence Design Systems Inc.'s 200-week moving average is $258.81 as of 2026-03-20. This is the average weekly closing price over roughly the last 4 years, and it acts as a long-term trend line. When a stock drops below this level, it can signal that the price has fallen far enough from the long-term trend to attract value-oriented investors.
What happens when CDNS drops below its 200-week moving average?
CDNS has crossed below its 200-week moving average 17 times in our data. The average one-year return after these crossings was -15.4%, meaning the dips were not reliable buying signals for this particular stock. These episodes lasted 33 weeks on average.
Is CDNS a good value right now?
Here's what our data says about CDNS as of 2026-03-20: The stock is above its 200-week moving average, so it doesn't currently meet our primary signal. The 14-week RSI is 34. Free cash flow yield is 1.9%. Return on equity is 21.9%. Price-to-book is 14.1x. This is not a buy or sell recommendation — always do your own research.
How does CDNS compare to the S&P 500?
Over the past 33.2 years, $100 invested in CDNS would have grown to $5774, compared to $2683 for the S&P 500. That's 13.0% annualized vs 10.4% for the index. CDNS has outperformed the broader market over this period.
Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.
Data as of week of 2026-03-20