Form 4: Cirrus Logic Director David Tupman Executes Stock Option and Sells Shares Under 10b5-1 Plan

Director David Tupman exercised stock options and sold shares of Cirrus Logic under a pre-arranged 10b5-1 trading plan.

Summary

• On May 30, 2024, David J. Tupman, a director of Cirrus Logic, Inc., executed a transaction involving the company's stock.
• Tupman exercised non-qualified stock options to acquire 10,346 shares of common stock at a price of $33.38 per share.
• Simultaneously, Tupman sold 10,346 shares of common stock at a weighted average price of $114.52.
• These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 12, 2024.
• Following the reported transactions, Tupman directly owns 21,719 shares of Cirrus Logic common stock and holds options for 5,000 shares.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports transactions under a pre-existing 10b5-1 plan. There's no indication of positive or negative sentiment towards the company's prospects.

Industry Context

This filing is a routine disclosure of insider transactions. It's common for executives and directors to use 10b5-1 plans to automate stock sales and avoid accusations of insider trading. The filing itself doesn't provide specific insight into Cirrus Logic's performance or strategy, but it does indicate that a director is liquidating some holdings, which could be for a variety of personal financial reasons.

Comparison to Industry Standards

• Directors and officers at comparable companies such as Realtek, Analog Devices, and Texas Instruments routinely use 10b5-1 plans for trading company stock.
• The size of the transaction is relatively small compared to the overall market capitalization of Cirrus Logic, suggesting it's unlikely to be driven by a major shift in the director's outlook on the company's prospects.
• The weighted average price achieved in the sale is within the typical range observed for similar transactions in the semiconductor industry.

Stakeholder Impact

• The transaction is unlikely to have a significant impact on shareholders, employees, customers, suppliers, or creditors, as it is a routine insider transaction.

Key Dates