CDNS
Cadence Design Systems Inc. Technology - EDA Software Investor Relations →
Cadence Design Systems Inc. (CDNS) closed at $283.52 as of 2026-02-02, trading 11.4% above its 200-week moving average of $254.41. The stock is currently moving closer to the line, down from 16.8% last week. The 14-week RSI sits at 34, indicating neutral momentum.
Over the past 1969 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 $77.3 billion, CDNS is a large-cap stock. The company generates a free cash flow yield of 1.8%. Return on equity stands at 21.7%, indicating strong profitability. The stock trades at 14.8x 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 $5766, compared to $2849 for the S&P 500. That represents an annualized return of 13.0% vs 10.6% 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 2.6% compound annual rate, with 4 consecutive years of positive cash generation.
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% | +16911.2% |
| Jul 1991 | Aug 1991 | 5 | 4.9% | +20.0% | +7751.3% |
| Sep 1991 | Oct 1991 | 1 | 3.0% | -8.3% | +7574.2% |
| Jun 1992 | Dec 1992 | 24 | 26.4% | -31.0% | +6359.9% |
| Jan 1993 | Jan 1993 | 2 | 2.9% | -47.9% | +6085.9% |
| Feb 1993 | Oct 1994 | 86 | 60.6% | -38.0% | +6048.6% |
| Apr 1999 | Dec 1999 | 35 | 54.2% | +24.5% | +2080.9% |
| Feb 2000 | Mar 2000 | 4 | 15.0% | +22.0% | +1199.8% |
| Mar 2000 | Sep 2000 | 24 | 38.5% | -10.4% | +1274.6% |
| Oct 2000 | Oct 2000 | 1 | 0.5% | -13.8% | +1174.2% |
| Mar 2001 | Oct 2001 | 33 | 31.7% | +18.7% | +1392.2% |
| Dec 2001 | Jan 2002 | 6 | 6.8% | -47.4% | +1170.3% |
| Feb 2002 | Mar 2002 | 2 | 5.9% | -50.9% | +1261.8% |
| Apr 2002 | Dec 2003 | 91 | 53.5% | -50.2% | +1286.4% |
| Jan 2004 | Jul 2005 | 78 | 32.9% | -21.4% | +1611.0% |
| Nov 2007 | Dec 2007 | 2 | 0.9% | -81.2% | +1604.9% |
| Dec 2007 | Feb 2011 | 162 | 82.6% | -76.3% | +1646.9% |
| Average | 33 | — | +-15.4% | — |
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 Friday close, 2026-02-02