Form 4: ADMA CEO Sells Shares Under Pre-Arranged 10b5-1 Plan

ADMA Biologics President and CEO Adam S. Grossman executed a pre-arranged sale of 21,000 shares of common stock on October 24, 2025, following the exercise of options.

Summary

• Adam S. Grossman, President and CEO of ADMA Biologics, executed transactions on October 24, 2025, under a Rule 10b5-1 trading plan established on December 5, 2024.
• Grossman acquired 15,000 shares of common stock by exercising stock options at a price of $5.40 per share.
• Concurrently, he disposed of a total of 21,000 shares of common stock through two separate sales at a price of $16.00 per share.
• Following these transactions, Grossman directly holds 2,019,850 shares of common stock.
• His direct holdings include 1,032,166 unvested Restricted Stock Units (RSUs) from grants on March 7, 2022, March 6, 2023, February 26, 2024, and February 19, 2025.
• He also directly holds 750,950 stock options.
• Grossman indirectly owns 1,143,426 shares through Areth, LLC, where he is a control person, and 580,957 shares through Hariden, LLC, where he is the managing member.

Sentiment

Score: 5

Explanation: The filing reports a pre-arranged insider sale, which is a neutral event. While the insider profited significantly from the option exercise and sale, the planned nature mitigates any negative sentiment typically associated with insider selling.

Positives

• The sale price of $16.00 per share is significantly higher than the option exercise price of $5.40, indicating a profitable transaction for the insider.
• The transactions were executed under a pre-arranged Rule 10b5-1 trading plan, which suggests the sale was not based on new, non-public information and is a planned liquidity event.

Negatives

• Insider selling, even under a 10b5-1 plan, can sometimes be perceived negatively by investors as it might suggest a lack of conviction in the company's future stock price appreciation, although this is mitigated by the pre-arranged nature.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may note the insider sale, but its execution under a Rule 10b5-1 plan suggests it was a pre-planned liquidity event rather than a signal of management's diminished confidence in the company's future.

Key Dates

Recommendation

The Form 4 details a pre-scheduled insider sale under a Rule 10b5-1 plan. While the CEO profited from exercising options and selling shares at a higher price, this is a planned liquidity event and not indicative of new fundamental information. The volume of shares sold is not exceptionally large relative to total outstanding shares or the CEO's remaining holdings (including unvested RSUs and options). Therefore, it does not warrant a change in investment thesis, leading to a 'hold' recommendation.

Keywords

ADMA Biologics, ADMA, Adam S. Grossman, Form 4, insider transaction, stock option exercise, share sale, Rule 10b5-1 plan, CEO, Director