Cadence Design Systems Inc. has been growing its earnings by an average of 14.9% per year, as reported by Simply Wall St., a financial website. This is higher than the annual earnings growth of 20.1% for the software industry. Its revenues have also been rising by an average of 12.8% per year. Cadence Design Systems Inc. has a return on equity of 30.6% and a net margin of 23.4%.
Cadence Design Systems Inc. has a shareholder equity of $2.9 Billion and a debt of $648.6 Million, which gives it a debt-to-equity ratio of 22.3%. As per Simply Wall St., its assets, and liabilities are $5.2 Billion and $2.2 Billion, respectively. Cadence Design Systems Inc. stock’s EBIT is $1.1 Billion, which results in an interest coverage ratio of 48.9. It has $873.9 Million in cash and short-term investments.
The market capitalization of CDNS stock is $63.602 Billion and the total revenue is $3.562 Billion. Moreover, the stock’s basic EPS is $3.30 and the price-to-earnings ratio is 72.00. Moreover, the average volume is 1.846 Million and the current volume is 1.615 Million, where the current volume is below the average volume.
Moreover, the CDNS stock has done well this month, increasing by 1.31%, and surged by 28.73% in the last six months. Cadence Design Systems Inc. (NASDAQ: CDNS) stock has a positive year-to-date return of 43.71% and also a positive 1-year return of 27.90%.
Technical Analysis of Cadence Design Price in 1-D Time Frame
The price action shows Cadence Design Systems Inc.’s (NASDAQ: CDNS) price has shown a bullish trend for the last three months, rising by 10.74%. At the time of publication, CDNS price was trading at $234.01 and forming a symmetrical triangle in the one-day time frame. This pattern indicates that the CDNS price is consolidating and will soon choose a direction, which could be either up or down.
Therefore, if the CDNS price holds the current level, it could move upwards and reach the first and second targets of $247.43 and $263.11. However, if the CDNS price rejects the current level and drops, then it might hit the nearest support levels of $220.30 and $200.09 over the one-day time frame in Cadence Design price.
At the time of publishing, Cadence Design Systems Inc. is trading above the 50, 100, and 200-day EMAs (exponential moving average), which supports the Cadence Design stock price trend.
However, the Cadence Design price took a pullback in the last couple of days and the price seems to be declining as the 20 EMA is breached. Moreover, if the CDNS price fails to sustain, then the price might decline by breaking major EMAs one by one over the daily time frame chart.
The current value of relative strength index (RSI) is 48.95 points. The 14 SMA is above the median line at 57.07 points which indicates bearishness that the Cadence Design price has changed direction and is declining by taking rejection from 14 SMA.
The moving average convergence divergence (MACD) line at 1.73 and signal line at 2.89 are above the zero line, and a bearish crossover was observed in the MACD oscillator, which signals more bearishness for the CDNS stock price.
Summary
Cadence Design Systems Inc. (NASDAQ: CDNS) shows that the investors and traders of the stock are bearish on the 1-D time frame. The price action reflects a bearish outlook at the time of publishing. The technical parameters of the CDNS stock price also support the bearish trend. The major indicators- MACD, RSI, and EMA are giving negative signals and imply that the downtrend may continue in CDNS stock price.
Technical Levels
- Support Levels: The nearest support levels are $220.30 and $200.09.
- Resistance Levels: The nearest resistance levels are $247.43 and $263.11.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/01/cadence-design-price-prediction-will-cdns-stock-price-fall-soon/