Form 4: Cara Therapeutics Executive Sells Shares to Cover Tax Obligations

Scott Terrillion, a Cara Therapeutics officer, sold 163 shares of common stock on February 28, 2025, to cover tax obligations related to vesting restricted stock units.

Summary

• On February 28, 2025, Scott Terrillion, Secretary, Chief Compliance Officer, and General Counsel of Cara Therapeutics, Inc., sold 163 shares of common stock.
• The sale was executed at a weighted average price of $4.76 per share, with individual transactions ranging from $4.75 to $4.99.
• The transaction was conducted under a pre-arranged 'sell to cover' arrangement adopted on September 7, 2018, to satisfy tax withholding obligations triggered by the vesting of restricted stock units.
• Following the transaction, Terrillion directly owns 7,190 shares of Cara Therapeutics common stock.
• The reported number of securities reflects a 1-for-12 reverse stock split that occurred on December 30, 2024.

Sentiment

Score: 5

Explanation: This is a neutral event. It's a routine transaction to cover tax obligations and doesn't necessarily indicate a positive or negative outlook on the company.

Industry Context

This is a routine Form 4 filing, indicating an insider transaction. It's common for executives to sell shares to cover tax obligations related to equity compensation. The 'sell to cover' arrangement is a standard practice.

Comparison to Industry Standards

• Sell-to-cover arrangements are a common practice among publicly traded companies to manage tax obligations for employees receiving equity compensation.
• The filing is consistent with standard SEC reporting requirements for insider transactions, similar to filings made by executives at companies like Amgen, Pfizer, and Johnson & Johnson when they exercise stock options or sell shares.

Stakeholder Impact

• The sale of shares by an officer could have a minor, short-term impact on the stock price, but is unlikely to have a significant long-term effect.

Key Dates