Cadence Exec Paul Scannell Offloads Shares Just After Earnings Surge—Insider Selling Amid Bull Market Raises Valuation Questions

Insider Selling in a Bull Market: What Cadence’s Senior Execs Are Doing

Cadence Design Systems’ latest director‑dealing filing shows Senior Vice President Paul Scannell selling 112 shares at $283.46 on February 17, 2026. The sale was executed when the stock traded near its 52‑week high of $376.45, yet the price was only 2‑3 % below that peak. In a market that has been climbing steadily over the past year—up 14.8 % year‑to‑date—this transaction is unlikely to dent the stock’s momentum, but it does raise questions about what insiders think the company’s valuation should be.

A Pattern of Opportunistic Trades

Scannell’s history of sales tells a consistent story: he tends to unload shares during periods of strong price appreciation or after earnings releases that lift the share price. From December 2025 through February 2026, he sold between 759 and 4,731 shares at prices ranging from $324 to $340 per share, often just before or after quarterly reports. His most recent sale of 112 shares at $283.46 reflects the same timing—just after the 2025 Q4 earnings that pushed the stock up more than 7 % in early trade. The pattern suggests that he views Cadence as a “buy‑and‑hold” asset but prefers to realize gains when the market rewards his stake.

Implications for Investors

For the average shareholder, a single 112‑share sale is negligible relative to Cadence’s $77 billion market cap. However, the broader trend of insider selling—especially among senior executives—can be a sign that the company’s leadership believes the current valuation is high. If insider sales continue at this pace, it may prompt analysts to re‑evaluate Cadence’s lofty price‑earnings ratio of 73.38, which is well above the industry average. Conversely, the fact that sales are happening in a bull market, with the stock still up nearly 3 % on the day, indicates that insiders are comfortable locking in profits without signaling a fundamental shift in confidence.

Profile of Paul Scannell

Paul Scannell has served as Cadence’s Senior Vice President of Technology since 2022, overseeing product development for the company’s flagship EDA tools. His insider activity has been consistent: a mix of large sales and occasional purchases, mostly through the Employee Stock Purchase Plan (ESPP) and restricted stock awards. He has never exercised a significant number of options or taken a long‑term stake, suggesting that he relies on short‑term liquidity needs or portfolio rebalancing rather than a belief that the company will outpace the market. His trade frequency—roughly one sale every 1–2 months—mirrors the cadence of quarterly earnings and product launches, indicating a strategic approach rather than panic selling.

Looking Ahead

Cadence’s strong earnings trajectory and continued relevance to AI and semiconductor design keep the company on a bullish path. Insider sales like Scannell’s are a normal part of corporate governance and do not necessarily forecast a downturn. Nevertheless, investors should monitor the volume of insider transactions in the coming quarters. If senior executives begin selling in larger numbers or at lower prices, it could presage a valuation correction. For now, Cadence’s stock remains an attractive play for long‑term investors willing to weather a high PE multiple and capitalize on the growing demand for EDA software.