Form 4: Cadence Design Systems Senior VP Executes Pre-Planned Stock Transactions

A Senior Vice President at Cadence Design Systems Inc. (CDNS) engaged in pre-planned stock option exercises and subsequent sales of common stock totaling over 9,000 shares.

Summary

• Chin-Chi Teng, Senior Vice President at Cadence Design Systems Inc. (CDNS), reported transactions involving the company's common stock.
• On July 17, 2025, Teng acquired 5,588 shares of common stock at an exercise price of $138.02 per share through the exercise of non-qualified stock options.
• These options were part of a grant that began vesting at a rate of 1/48th per month starting March 25, 2021, and have an expiration date of February 25, 2028.
• On the same day, July 17, 2025, Teng sold a total of 9,088 shares of common stock across multiple transactions.
• The sales occurred at weighted average prices ranging from $311.88 to $313.91 per share.
• Specifically, sales included 1,795 shares at $311.88, 3,674 shares at $313.01, 119 shares at $313.91, 1,152 shares at $311.89, 1,827 shares at $312.97, and 521 shares at $313.65.
• All reported transactions were executed pursuant to a Rule 10b5-1 Trading Plan adopted by the reporting person on March 7, 2025.
• Following these transactions, Chin-Chi Teng's direct beneficial ownership of Cadence Design Systems common stock stands at 132,713 shares, and 400 derivative securities (options).

Sentiment

Score: 5

Explanation: The sentiment is neutral. While there was a net sale of shares by a senior executive, the transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which typically indicates a scheduled liquidity event rather than a bearish signal on the company's immediate prospects.

Positives

• The exercise of stock options indicates that the executive saw value in acquiring shares at the exercise price.
• The transactions were conducted under a Rule 10b5-1 trading plan, which suggests pre-scheduled liquidity events rather than reactive selling based on new, non-public information.

Negatives

• There was a net sale of 3,500 shares of common stock (9,088 sold minus 5,588 acquired) by a Senior Vice President, which reduces the executive's direct equity stake in the company.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This filing is a routine disclosure of insider stock transactions and does not provide broader industry context or trends.

Stakeholder Impact

• Shareholders are impacted by the change in insider ownership, as a senior executive has reduced their direct equity stake in the company.
• The transactions may lead to minor selling pressure on the stock, although the pre-planned nature mitigates the signaling effect.

Key Dates

Keywords

Cadence Design Systems, CDNS, SEC Form 4, Insider Trading, Stock Options, Rule 10b5-1 Plan, Executive Compensation, Share Sales, Beneficial Ownership