TENG CHIN-CHI 4

What Happened Teng Chin‑Chi, Senior Vice President of Cadence Design Systems (CDNS), exercised 1,000 stock options (paid $202.94 each; total cost $202,940) and executed multiple open‑market sales of 4,500 shares on July 22, 2026 for aggregate proceeds of approximately $1,527,554. The Form 4 also shows 1,000 derivative shares reported disposed at $0 (likely shares surrendered/withheld in connection with the option exercise or tax withholding). The activity is primarily sales (routine monetization) following an option exercise; purchases were limited to the exercised options.

Key Details

• Transaction date: 2026-07-22; Form 4 filed 2026-07-23 (timely).
• Option exercise: 1,000 shares acquired at $202.94 per share (total $202,940).
• Open‑market sales: 4,500 shares sold in multiple trades for total proceeds ≈ $1,527,554 (weighted average prices and price ranges listed in footnotes).
• Derivative disposition: 1,000 shares reported disposed at $0 (marked as M/Derivative in filing).
• Footnotes: Trades effected pursuant to a Rule 10b5‑1 trading plan adopted 2026-02-20 (F1); option vests at 1/48th per month (F11); multiple footnotes (F2–F10) note weighted‑average pricing and price ranges for different sale tranches.
• Shares owned after transaction: Not specified in the excerpt provided.

Context

• "M" indicates exercise/conversion of options; the presence of a $0 disposition for 1,000 shares commonly reflects shares surrendered to cover taxes or the exercise cost (i.e., part of a cashless or net settlement), though the filing does not explicitly state the reason.
• The sales were executed under a pre‑arranged 10b5‑1 plan, which generally indicates trades were pre‑scheduled and not based on contemporaneous insider material nonpublic information.
• For retail investors: sales are often routine (liquidity/tax planning); purchases are stronger signals of insider bullishness. This filing shows net disposition of shares on the reported date.