Cadence Slides 2.63 as 0.64B Volume Ranks 150th Amid Institutional Buys and Insider Sells

Cadence Design Systems (CDNS) closed August 19, 2025, with a 2.63% decline, trading at $349.88 per share. The stock recorded a volume of $0.64 billion, ranking 150th in the market. Recent insider activity includes Paul Scannell, a senior vice president, selling 274 shares on August 15 and 181 shares on August 18 through a tax obligation-related transaction, reducing his holdings to 26,589 shares. Institutional interest remains robust, with Vestmark Advisory Solutions Inc. boosting its stake by 62.9% in Q1 2025 to 4,976 shares, valued at $1.27 million. Other institutional investors increased holdings significantly, though specific names were excluded due to formatting restrictions.

Analysts have maintained a positive outlook following Cadence’s Q2 earnings report on July 28, which showed $1.65 EPS—$0.09 above estimates—and $1.28 billion in revenue, a 20.2% year-over-year increase. Goldman Sachs, Needham & Company, and Bank of America reiterated “buy” ratings, with target prices ranging from $350 to $390. Institutional ownership now accounts for 84.85% of the stock, while insiders hold 1.99%. Recent insider sales, including 1,000 shares by VP Paul Cunningham and 180 shares by director Ita M. Brennan, have reduced ownership stakes by 0.95% and 2.20%, respectively.

A strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1-day return of 1.98%, with a total return of 7.61% over 365 days. The approach had a Sharpe ratio of 0.94 but experienced a maximum drawdown of -29.16%, underscoring its exposure to market volatility.