Form 4: Cirrus Logic Executive Exercises Options and Sells Shares Under Pre-Arranged Plan
Insider Transaction Report
Jeffrey W. Baumgartner, EVP of R&D at Cirrus Logic, executed a pre-arranged transaction involving the exercise of stock options and subsequent sale of common stock.
Summary
- Jeffrey W. Baumgartner, Executive Vice President of Research & Development at Cirrus Logic, Inc. (CRUS), reported transactions on June 3, 2025.
- Mr. Baumgartner acquired 10,000 shares of Common Stock by exercising non-qualified stock options at a price of $38.34 per share.
- Concurrently, he disposed of 10,000 shares of Common Stock at a price of $100.00 per share.
- These transactions were conducted pursuant to a Rule 10b5-1 trading plan adopted by Mr. Baumgartner on August 20, 2024.
- Following these transactions, Mr. Baumgartner directly beneficially owns 14,001 shares of Common Stock.
- He also holds 17,391 non-qualified stock options, which were fully vested and exercisable as of May 2, 2022, and expire on May 2, 2028.
Sentiment
Score: 5
Explanation: The sentiment is neutral as this is a routine insider transaction under a pre-arranged plan, which is a common occurrence and does not inherently signal positive or negative company performance.
Positives
- The executive realized a significant profit from the exercise of options and subsequent sale of shares, acquiring shares at $38.34 and selling them at $100.00.
- The transactions were conducted under a pre-arranged Rule 10b5-1 plan, indicating a structured and transparent approach to insider trading.
Negatives
- The executive's direct beneficial ownership of common stock decreased by 10,000 shares as a result of the sale.
Future Outlook
This Form 4 filing reports past transactions and does not contain forward-looking statements or guidance regarding the company's future performance.
Industry Context
This filing is a routine insider transaction report and does not provide information directly related to broader industry trends or competitive landscape. It reflects an individual executive's compensation and personal financial planning.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Transaction under pre-existing plan | The reported transactions were made pursuant to a Rule 10b5-1 plan adopted by the reporting person on August 20, 2024. This demonstrates adherence to a pre-arranged trading strategy designed to comply with insider trading regulations. | 06/03/2025 | Indicates a structured approach to executive stock transactions, reducing the perception of opportunistic trading. |
Stakeholder Impact
- Shareholders: The sale of shares by an executive could be perceived as a minor signal, but given it's under a 10b5-1 plan, it's generally viewed as a personal financial planning event rather than a reflection of management's view on the company's immediate prospects.
Key Dates
| Date | Description |
|---|---|
| 05/02/2019 | 25% of the non-qualified stock options vested. |
| 05/02/2022 | Remaining non-qualified stock options vested monthly over 36 months, making the option fully vested and exercisable. |
| 08/20/2024 | Date the Rule 10b5-1 plan was adopted by the reporting person. |
| 06/03/2025 | Date of the reported stock option exercise and common stock sale transactions. |
| 06/05/2025 | Date the Form 4 was signed by the attorney-in-fact for Jeffrey Baumgartner. |
| 05/02/2028 | Expiration date of the non-qualified stock options. |
Keywords
CIRRUS LOGIC, CRUS, Form 4, Insider Trading, Stock Option Exercise, Stock Sale, Executive Compensation, Rule 10b5-1 Plan
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