Form 4: Avalo Therapeutics CLO Sells Shares for Tax Withholding

Avalo Therapeutics' Chief Legal Officer, Paul Varki, disposed of 1,016 common shares at $4.10 each to cover tax withholding obligations.

Summary

• Paul Varki, Chief Legal Officer of Avalo Therapeutics, Inc. (AVTX), reported a transaction on December 10, 2025.
• Varki disposed of 1,016 shares of Avalo Therapeutics common stock at a price of $4.10 per share.
• This disposition was made to satisfy tax withholding obligations related to equity compensation.
• Following this transaction, Varki beneficially owns 3,634 shares of Avalo Therapeutics common stock.
• The remaining 3,634 shares include those acquired through the Issuer's Employee Stock Purchase Plan.

Sentiment

Score: 5

Explanation: The transaction is a routine disposition of shares to cover tax withholding obligations, which is a common practice for executives receiving equity compensation. It does not reflect a discretionary sale based on sentiment towards the company's future prospects.

Positives

• Chief Legal Officer Paul Varki continues to hold 3,634 shares of Avalo Therapeutics common stock, indicating continued alignment with shareholder interests.

Negatives

• No direct negatives identified from this routine tax-related disposition.

Risks

• NA

Future Outlook

NA

Industry Context

This Form 4 filing reports a routine insider transaction for tax purposes and does not provide information directly related to broader industry trends or competitive landscape.

Related Party Transactions

• Disposition of 1,016 common shares to Avalo Therapeutics to satisfy tax withholding obligations related to equity compensation.
• Beneficial ownership includes shares acquired through the Issuer's Employee Stock Purchase Plan (ESPP).

Stakeholder Impact

• Shareholders: Minor, routine insider transaction; no significant impact on share price or company valuation.
• Employees: No direct impact on general employees.

Key Dates

Recommendation

This Form 4 reports a routine disposition of shares by an executive to cover tax withholding obligations, which is a common and non-discretionary event. It does not provide new information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as this filing does not alter the fundamental investment thesis.

Keywords

Avalo Therapeutics, AVTX, Form 4, insider transaction, stock sale, tax withholding, Paul Varki, Chief Legal Officer