Form 4: Alector CEO Arnon Rosenthal Sells Shares to Cover Tax Obligations

Alector, Inc. CEO Arnon Rosenthal reported the sale of 52,087 shares of common stock on June 2, 2025, to satisfy tax obligations related to restricted stock unit vesting.

Summary

• Alector, Inc. (ALEC) CEO and Director, Arnon Rosenthal, reported a transaction on June 2, 2025.
• The transaction involved the sale of 52,087 shares of Alector Common Stock.
• The shares were sold at a weighted average price of $1.3384 per share, with individual transaction prices ranging from $1.285 to $1.41.
• The purpose of the sale was to satisfy the reporting person's tax obligations in connection with the vesting of restricted stock units (RSUs).
• Following this transaction, Arnon Rosenthal directly beneficially owns 2,414,657 shares of Common Stock.
• Additionally, Mr. Rosenthal indirectly beneficially owns 1,972,875 shares through The Rosenthal Family Revocable Trust, and 652,500 shares each through the Adi Rosenthal 2007 Trust, Noam Rosenthal 2007 Trust, and Shani Rosenthal 2007 Trust, for which he serves as trustee.

Sentiment

Score: 5

Explanation: The transaction is a routine sale of shares to cover tax obligations related to RSU vesting, which is a common and expected event for executives. It does not indicate a change in company fundamentals or management's view of the company's prospects.

Positives

• The reported sale was explicitly for the purpose of satisfying tax obligations related to the vesting of restricted stock units, indicating a routine and non-discretionary transaction.

Negatives

• Any insider selling, even for tax purposes, can sometimes be perceived negatively by the market as it reduces the insider's direct equity stake in the company.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Shares are held indirectly by The Rosenthal Family Revocable Trust Dated November 4, 1994, as restated on June 9, 1999, for which the Reporting Person serves as trustee.
• Shares are held indirectly by the Adi Rosenthal 2007 Trust dated March 27, 2007, for which the Reporting Person serves as trustee.
• Shares are held indirectly by the Noam Rosenthal 2007 Trust dated March 27, 2007, for which the Reporting Person serves as trustee.
• Shares are held indirectly by the Shani Rosenthal 2007 Trust dated March 27, 2007, for which the Reporting Person serves as trustee.

Stakeholder Impact

• Shareholders: The sale slightly reduces the CEO's direct ownership stake, which could be interpreted by some as a minor negative, though it is a common tax-related event and the overall beneficial ownership remains substantial.

Key Dates

Keywords

Alector, ALEC, Arnon Rosenthal, CEO, Director, Insider Trading, Form 4, SEC Filing, Stock Sale, Restricted Stock Units, RSU, Tax Obligations, Beneficial Ownership