Form 4: Avery Dennison Executive Chairman Mitchell R Butier Executes Stock Option Exercise and Sales Under 10b5-1 Plan

Mitchell R Butier, Executive Chairman of Avery Dennison Corp, executed stock option exercises and sales of common stock on July 31, 2024, and August 1, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Mitchell R Butier, the Executive Chairman of Avery Dennison Corp, engaged in transactions involving the company's stock on July 31, 2024, and August 1, 2024.
• These transactions involved the exercise of employee stock options and the subsequent sale of common stock.
• The exercises were related to 2016 Employee Stock Options with an exercise price of $73.956.
• A total of 20,000 options were exercised across the two days, resulting in the acquisition of 20,000 shares.
• The sales of common stock were executed at varying prices, ranging from approximately $212.29 to $218.42 per share.
• The sales were conducted in multiple trades at different price points within these ranges.
• These transactions were executed automatically pursuant to a Rule 10b5-1 trading plan adopted on March 14, 2024.
• Following these transactions, Butier directly owns 304,114 shares of common stock, with an additional 4,179.333 shares held indirectly through a savings plan.
• Butier also holds 101,108 derivative securities.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing simply reports transactions executed under a pre-existing plan. There's no indication of positive or negative sentiment towards the company's prospects.

Positives

• The transactions were pre-planned under a Rule 10b5-1 trading plan, indicating an absence of insider information influencing the trades.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, and the use of Rule 10b5-1 plans is a standard practice to avoid insider trading concerns. These transactions can be influenced by personal financial planning and diversification strategies.

Comparison to Industry Standards

• Rule 10b5-1 trading plans are a common practice among executives at publicly traded companies, including Avery Dennison's competitors such as 3M, CCL Industries, and Multi-Color Corporation.
• Executives at these companies also periodically file Form 4 documents detailing stock transactions, including option exercises and share sales.
• The size and frequency of these transactions can vary widely depending on individual circumstances and company policies.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership, but the pre-planned nature of the trades mitigates concerns about insider information.

Key Dates