Form 4: Atmus Director Donoso Reports Share Transactions, Late Filing Noted

Atmus Filtration Technologies Director Diego Donoso filed a late Form 4 detailing multiple common stock transactions, including a rescinded sale due to broker error.

Summary

• Diego Donoso, a Director of Atmus Filtration Technologies Inc. (ATMU), filed a Form 4 reporting several transactions involving the company's common stock.
• On April 2, 2025, Donoso sold 40 shares of common stock at a price of $37.79 per share, resulting in 9,038 shares beneficially owned.
• On August 13, 2025, Donoso purchased 25 shares of common stock at $45.00 per share, increasing his beneficial ownership to 9,063 shares.
• On September 5, 2025, Donoso purchased an additional 15 shares of common stock at $45.81 per share, bringing his beneficial ownership to 9,078 shares.
• A sale of 20 shares on November 13, 2025, at $48.84 per share was effected by mistake, temporarily reducing beneficial ownership to 9,058 shares.
• On November 18, 2025, these 20 shares were rescinded through a broker's error account, effectively reversing the mistaken sale and restoring beneficial ownership to 9,078 shares.
• The Form 4 was filed late because the reported transactions only recently came to the attention of the reporting person and the issuer.
• All profits from the reported transactions will be disgorged to the issuer pursuant to applicable requirements.

Sentiment

Score: 4

Explanation: The filing indicates minor compliance issues with a late submission and a mistaken transaction, though corrected. The insider purchases are a positive signal, but the overall context suggests a need for improved internal controls regarding insider trading reporting.

Positives

• The reporting person made two purchases of common stock, indicating confidence in the company's value.
• A mistaken sale transaction was identified and promptly rescinded, demonstrating corrective action.

Negatives

• The Form 4 was filed late, indicating a lapse in timely reporting of insider transactions.
• A sale transaction was effected by mistake, suggesting potential issues with internal controls or oversight regarding insider trading.

Risks

• Compliance risk due to the late filing of the Form 4, which is a regulatory requirement.
• Potential for reputational damage for the director and the company due to the mistaken transaction and late reporting.
• Risk of regulatory scrutiny given the need to disgorge profits from the reported transactions.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance.

Management Comments

• The reported transactions only recently came to the attention of the reporting person and the issuer.
• Neither the reporting person nor the issuer was aware of the transactions at the time they occurred.
• Upon discovery, the issuer promptly took steps to prepare and file this Form 4 reflecting the transactions.
• All profits from the reported transactions will be disgorged to the issuer pursuant to applicable requirements.

Industry Context

This Form 4 reports insider transactions, which are specific to the individual director and company and do not directly reflect broader industry trends.

Corporate Governance

Stakeholder Impact

• Shareholders may question the effectiveness of internal controls and compliance procedures given the late filing and mistaken transaction, although the issue was corrected.
• The disgorgement of profits reinforces regulatory compliance and accountability for insider trading rules.

Next Steps

• Disgorgement of all profits from the reported transactions to the issuer, as required by applicable regulations.

Key Dates

Recommendation

The Form 4 details routine insider transactions, including both purchases and a corrected sale, which do not provide sufficient new information to alter an investment thesis. The late filing and error are minor compliance issues that have been addressed, and the overall impact on the company's fundamentals is negligible.

Keywords

Atmus Filtration Technologies Inc., ATMU, Diego Donoso, Form 4, Insider Trading, Director Transactions, Stock Sale, Stock Purchase, Beneficial Ownership, SEC Filing