Form 4: Cadence Design Systems Executive Sells Shares Under 10b5-1 Plan

A Cadence Design Systems executive, Chin-Chi Teng, sold a portion of their holdings in company stock under a pre-arranged 10b5-1 trading plan.

Summary

• Chin-Chi Teng, a Senior Vice President at Cadence Design Systems, executed multiple transactions involving the company's common stock on January 3, 2025.
• These transactions included the acquisition of 12,500 shares through the exercise of stock options at a price of $56.57 per share.
• Teng also sold a total of 12,500 shares in multiple transactions at weighted average prices ranging from $298.22 to $300.93 per share.
• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on August 16, 2024.
• Following these transactions, Teng's direct holdings of Cadence Design Systems common stock decreased to 93,275 shares.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction by an executive under a pre-arranged trading plan, with no indication of positive or negative sentiment.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often conducted under pre-arranged trading plans to avoid accusations of insider trading. This filing is a routine disclosure of such activity.

Comparison to Industry Standards

• The use of 10b5-1 trading plans is a standard practice among executives at publicly traded companies, including Cadence's competitors such as Synopsys (SNPS) and Mentor Graphics (now part of Siemens).
• The reported transaction prices are within the typical range for market trades of a company with a similar market capitalization and stock price.
• The vesting schedule of the stock options is also typical for executive compensation packages in the technology industry.

Stakeholder Impact

• The transactions have a minimal impact on shareholders as they are part of a pre-arranged trading plan and do not indicate any change in the company's fundamentals.
• The transactions do not have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Cadence Design Systems, insider trading, stock options, Rule 10b5-1, executive stock sales, CDNS, equity transactions