Form 4: AMERICAN COASTAL INSURANCE General Counsel Reports Significant Stock Transactions

Brooke Adler, General Counsel of American Coastal Insurance Corp, reported the acquisition of common stock through derivative conversions and the disposition of shares, including those withheld for tax purposes, on May 27, 2025.

Summary

• Brooke Adler, General Counsel of AMERICAN COASTAL INSURANCE Corp (ACIC), reported transactions on May 27, 2025.
• Adler acquired 38,314 shares of common stock at a price of $0, likely through the exercise or conversion of derivative securities.
• Following this acquisition, Adler's direct beneficial ownership of common stock was 114,970 shares.
• Concurrently, Adler disposed of 11,705 shares of common stock at a price of $10.82 per share, which typically represents shares withheld to cover tax obligations upon vesting of equity awards.
• After all reported transactions, Brooke Adler's direct beneficial ownership of common stock stands at 103,265 shares.
• Derivative transactions included the conversion of 16,339 Performance Stock Units, 12,255 Restricted Stock Units, 517 Dividend Equivalent Units related to RSUs, and 689 Dividend Equivalent Units related to PSUs, all at a $0 exercise price.
• Performance Stock Units vest over three years, with the final number of shares delivered ranging from 0% to 150% based on performance factors.
• Restricted Stock Units also vest over three years, with one-third vesting in each period.
• Dividend Equivalent Units vest proportionately with their underlying Restricted Stock Units or Performance Stock Units.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While there's a disposition of shares, it's likely for tax purposes related to the vesting of equity awards, which is a positive for the executive. The overall activity reflects routine compensation and ownership changes rather than a significant strategic shift.

Positives

• The acquisition of 38,314 shares of common stock indicates the vesting and conversion of equity awards, reflecting compensation for the General Counsel.
• The conversion of Performance Stock Units, Restricted Stock Units, and Dividend Equivalent Units into common stock demonstrates the realization of previously granted equity incentives.

Negatives

• The disposition of 11,705 shares of common stock at $10.82 per share, likely for tax withholding, reduces the direct beneficial ownership of the reporting person.

Future Outlook

The document details the vesting schedules for Performance Stock Units and Restricted Stock Units, indicating that future share deliveries from Performance Stock Units will depend on the achievement of certain performance factors, ranging from 0% to 150% of the units.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions, common across all publicly traded companies. It reflects the compensation structure and equity award vesting for a key executive within the insurance industry, specifically American Coastal Insurance Corp.

Stakeholder Impact

• Shareholders: Provides transparency into the equity holdings and compensation activities of a key executive, which can influence investor perception of management alignment and stock liquidity.

Key Dates

Recommendation

Keywords

AMERICAN COASTAL INSURANCE Corp, ACIC, SEC Form 4, Insider Trading, Stock Transaction, Equity Compensation, Performance Stock Units, Restricted Stock Units, Dividend Equivalent Units, General Counsel, Brooke Adler, Common Stock