Cadence Design Jumps on Heavy Trading

The stock jumped more than 21% following two huge trades totaling 12.5 million shares.
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SAN FRANCISCO - Shares in Cadence Design Systems (CDNS) - Get Report got a boost Thursday from a pair of large premarket trades.

Shares jumped 71 cents, or 21.5%, to $4.02 in heavy trading late in the regular session.

Interest in the ticker picked up after two blocks of shares changed hands at $3.31 a share in premarket trading, according to sell-side analysts, who asked not to be named. The blocks reportedly totaled 12.5 million shares, or about 4.8% of outstanding shares.

Analysts seemed perplexed by the subsequent rise in the stock, given the lack of clear indication that the trades were anything more than an exit from a large position.

Revenue in Cadence, which develops software for the design of semiconductors, fell 18% year over year to $616.7 million during the first half of 2008, while competitors


(SNPS) - Get Report


Mentor Graphics


have posted growth.

Cadence shares lost a quarter of their value the day after the company delayed its third-quarter earnings report Oct. 22 and announced that

it would restate earnings

for the first half of the year.

The one-year price target on Cadence is $5.50, according to Thomson Reuters.