Cadence Design Systems Inc. (NASDAQ:CDNS) saw another insider transaction last week, as Senior Vice President Paul Scannell sold 2,401 shares of common stock for a total of $813,939, according to a regulatory filing. The shares changed hands at $339 each on November 9, 2026.
The sale was conducted under a Rule 10b5-1 trading plan that Scannell adopted on September 9, 2025. Such plans allow company insiders to pre-schedule sales at predetermined times to avoid accusations of trading on material nonpublic information.
The transaction arrives as Cadence's stock trades above InvestingPro's Fair Value estimate, a signal that the shares may be overvalued. The company currently maintains a market capitalization of $92.3 billion and reported gross profit margins of 86%, according to InvestingPro data.
In a separate disclosure, Scannell disposed of 619 shares of common stock on November 6, 2026, valued at $198,030. Those shares were withheld to satisfy tax obligations related to the vesting of a performance stock award, at a price of $319.92 per share. Such withholdings are a common mechanism for covering tax liabilities associated with equity compensation.
Following these reported transactions, Scannell directly holds 27,763 shares of Cadence Design Systems common stock.
The insider activity comes amid a backdrop of strong financial performance. Cadence reported third-quarter revenue of $1.633 billion, a 22% increase year-over-year. Adjusted earnings per share came in at $2.11, surpassing both internal guidance and consensus estimates.
Analysts have responded favorably to the results. Stifel maintained a Buy rating with a price target of $432. StoneX also reiterated a Buy rating, setting a higher price target of $450. KeyBanc kept an Overweight rating, citing the company's broad-based strength and a notable increase in full-year guidance by $79 million. Rosenblatt raised its price target to $425 from $420, highlighting performance that exceeded consensus estimates. Mizuho reiterated an Outperform rating with a $400 price target, acknowledging robust earnings and revenue figures.
These developments reflect positive sentiment among analysts regarding Cadence Design Systems' financial health and future prospects.