Form 4: Alector CEO Sells Shares for Tax Obligations

Alector, Inc. CEO Arnon Rosenthal sold 81,864 shares of common stock to cover tax obligations from restricted stock unit vesting.

Summary

• Arnon Rosenthal, Chief Executive Officer and Director of Alector, Inc. (ALEC), reported a sale of common stock.
• The transaction involved the disposition of 81,864 shares of Alector common stock on March 2, 2026.
• The shares were sold at a weighted average price of $2.1233 per share, with individual transactions ranging from $2.04 to $2.37.
• The purpose of the sale was to satisfy tax obligations incurred due to the vesting of restricted stock units (RSUs).
• Following the transaction, Arnon Rosenthal directly beneficially owns 2,338,176 shares of common stock.
• Indirect beneficial ownership includes 1,972,875 shares held by The Rosenthal Family Revocable Trust, and 652,500 shares each by the Adi Rosenthal 2007 Trust, Noam Rosenthal 2007 Trust, and Shani Rosenthal 2007 Trust, for which Mr. Rosenthal serves as trustee.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this transaction as neutral. It is a routine insider sale to cover tax liabilities from RSU vesting, which is a common occurrence and does not typically signal a change in company fundamentals or management's confidence.

Industry Context

StockSavvy.ai notes that sales of shares by executives to cover tax obligations upon the vesting of restricted stock units (RSUs) are a common and routine practice across industries, not typically indicative of a change in management's outlook on the company's future performance.

Related Party Transactions

• Indirect beneficial ownership of 1,972,875 shares is held by The Rosenthal Family Revocable Trust Dated November 4, 1994, as restated on June 9, 1999, for which Arnon Rosenthal serves as trustee.
• Indirect beneficial ownership of 652,500 shares is held by the Adi Rosenthal 2007 Trust dated March 27, 2007, for which Arnon Rosenthal serves as trustee.
• Indirect beneficial ownership of 652,500 shares is held by the Noam Rosenthal 2007 Trust dated March 27, 2007, for which Arnon Rosenthal serves as trustee.
• Indirect beneficial ownership of 652,500 shares is held by the Shani Rosenthal 2007 Trust dated March 27, 2007, for which Arnon Rosenthal serves as trustee.

Stakeholder Impact

• Shareholders: The transaction represents a routine insider sale for tax purposes, which is generally not considered a significant indicator of future company performance or a negative signal for shareholders.

Key Dates

Recommendation

The transaction is a routine sale of shares by the CEO to cover tax obligations arising from RSU vesting. This type of insider selling is common and does not typically reflect a change in the company's fundamental outlook or management's long-term view, thus warranting a 'hold' recommendation as no new material information impacting valuation is presented.

Keywords

Alector, ALEC, Insider Trading, Form 4, Stock Sale, CEO, Arnon Rosenthal, Tax Obligations, RSU Vesting