Form 4: AZEK Co Inc. Director Gary E. Hendrickson Reports Changes in Beneficial Ownership

Director Gary E. Hendrickson reports acquisition of deferred stock units and adjustments to beneficial ownership of AZEK Co Inc. shares.

Summary

• On June 11, 2024, Gary E. Hendrickson, a director of AZEK Co Inc., reported changes in his beneficial ownership of the company's stock.
• Hendrickson acquired 679 shares of Class A Common Stock at a price of $45.14 per share.
• These shares were in the form of deferred stock units (DSUs) granted in lieu of cash compensation under AZEK's Non-Employee Director Compensation Deferral program.
• The DSUs are fully vested and will settle in shares of AZEK Class A common stock on a one-for-one basis after Hendrickson's separation from the Board of Directors.
• Following the reported transaction, Hendrickson directly owns 227,086 shares of Class A Common Stock and indirectly owns 140,892 shares through a trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing indicates continued investment by a director, which can be seen as a positive sign, but it's a routine transaction.

Positives

• The acquisition of DSUs reflects Hendrickson's continued investment and alignment with the long-term success of AZEK Co Inc.

Future Outlook

The DSUs will settle in shares of AZEK Class A common stock on a one-for-one basis following the reporting person's separation from the Board of Directors.

Industry Context

This filing is a routine disclosure of changes in beneficial ownership by a company director, which is standard practice in publicly traded companies. It provides transparency to investors regarding the holdings and transactions of company insiders.

Comparison to Industry Standards

• Form 4 filings are a standard requirement for directors and officers of publicly traded companies in the United States, ensuring transparency in their trading activities.
• Similar filings are made by insiders at companies like Trex Company, Inc. and Westlake Corporation, which are also in the building products industry.

Stakeholder Impact

• The filing provides transparency to shareholders regarding the transactions of company insiders.
• The acquisition of DSUs by a director can be seen as a positive signal, aligning their interests with those of the shareholders.

Key Dates