Chips · Stock report · Cadence Design Systems (NASDAQ: CDNS)
Cadence — swings 6.3% either way after reports; ranks 78th of 85 chip stocks over a month
The Closelooknet read
Cadence Design Systems (NASDAQ: CDNS) has been a laggard this month, yet on 30 September it closed back above its 200-day moving average. It ranks 78th of the 85 stocks in our chip section on one-month move, down 2.5%. On our Print Record it moved 6.3% on average in either direction in the three sessions after each report, though it has beaten both earnings and revenue estimates on all ten. The last four reactions were -4.4%, +4.5%, -2.1% and -1.7%. On 30 September it closed at $330.19, above the average close of the last 200 sessions ($325.39). We watch whether it holds above that line into the 26 October report, or slips back under it.
The record shows four reports where it rose more than 3%, three where it stayed within 3%, and three where it fell more than 3%.
Where Cadence stands among our chip stocks
Cadence's one-month drop of 2.5% puts it 78th of 85 in our chip section. Its design-software peer Synopsys (SNPS) fell 1.06% over the month and is 18.64% below its 26 May high; Cadence's 20.7% gap to its high is wider. ARM Holdings (ARM) rose 19.74% over the month and is up 164.99% this year, yet is still 34.09% below its 18 June high.
Cadence is 20.7% below its 52-week closing high of $416.39 from 2 June, and up 5.63% this year.
Our money-flow and quality readings
Our money-flow reading (a gauge of net buying pressure) stands at 6.8. It is still positive but slowing, and it is down 11.1 points over 21 days. Cadence scores 55 of 100 overall on our composite. Quality rates 84, balance sheet 80 and growth 72, while valuation (18), capital allocation (42) and momentum (39) pull the total down. The Piotroski score is a check of financial health, scored 7 of 9.
Price trend
Cadence gained 1.86% on the day and 6.82% over five sessions, but is down 12.59% over three months. It trades 3.86% above its 50-day average ($317.90) and 1.47% above its 200-day average ($325.39). Its typical daily swing is about 2.62%.
A death-cross alert dated 29 September said the 50-day had crossed below the 200-day eight sessions earlier. The price closed back above its 200-day average a day later, on 30 September. The next report is on 26 October, with estimates of $2.04 a share and about $1.61 billion in revenue.
Closelooknet is a research diary. Nothing here is investment advice or a recommendation to buy or sell.