Cadence Design Systems Inc (CDNS)
Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company. The company produces software, hardware and silicon structures for designing integrated circuits, systems on chips (SoCs) and printed circuit boards.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 7.35% per annum.
- CDNS price at the close of March 28, 2025 was $256.69 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.34% per annum.
- CDNS price at the close of March 28, 2025 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of CDNS price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: January 18, 2024
End date: March 28, 2025
a = 5.9973
b = -0.0002
s = 0.0716
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -7.35%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0716) – 1
= 33.16%
January 18, 2024 calculations
Top border of price channel:
Exp(Y956)
= Exp(a + b × X956 + 2 × s)
= Exp(a + b × 1,388 + 2 × s)
= Exp(5.9973 + -0.0002 × 1,388 + 2 × 0.0716)
= Exp(5.8501)
= $347.28
Bottom border of price channel:
Exp(Y956)
= Exp(a + b × X956 – 2 × s)
= Exp(a + b × 1,388 – 2 × s)
= Exp(5.9973 + -0.0002 × 1,388 – 2 × 0.0716)
= Exp(5.5637)
= $260.80
March 28, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(5.9973 + -0.0002 × 1,823 + 2 × 0.0716)
= Exp(5.7591)
= $317.07
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(5.9973 + -0.0002 × 1,823 – 2 × 0.0716)
= Exp(5.4727)
= $238.11
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 7.35% per annum.
- CDNS price at the close of March 28, 2025 was $256.69 and was inside the primary price channel.
Secondary Trend
Start date: November 22, 2024
End date: March 28, 2025
a = 9.2339
b = -0.0020
s = 0.0558
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -52.34%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0558) – 1
= 25.00%
November 22, 2024 calculations
Top border of price channel:
Exp(Y1,171)
= Exp(a + b × X1,171 + 2 × s)
= Exp(a + b × 1,697 + 2 × s)
= Exp(9.2339 + -0.0020 × 1,697 + 2 × 0.0558)
= Exp(5.9003)
= $365.15
Bottom border of price channel:
Exp(Y1,171)
= Exp(a + b × X1,171 – 2 × s)
= Exp(a + b × 1,697 – 2 × s)
= Exp(9.2339 + -0.0020 × 1,697 – 2 × 0.0558)
= Exp(5.6772)
= $292.13
March 28, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(9.2339 + -0.0020 × 1,823 + 2 × 0.0558)
= Exp(5.6445)
= $282.73
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(9.2339 + -0.0020 × 1,823 – 2 × 0.0558)
= Exp(5.4214)
= $226.19
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.34% per annum.
- CDNS price at the close of March 28, 2025 was inside the secondary price channel.