Form 4: Coastal Financial Corp CEO Sprink Sells Shares Over Three Days

Coastal Financial Corp CEO Eric M. Sprink sold a total of 6,482 shares of common stock over three days, according to a Form 4 filing with the SEC.

Summary

• Eric M. Sprink, CEO of Coastal Financial Corp, reported the sale of company stock in a Form 4 filing.
• The transactions occurred over three days: November 4, 5, and 6, 2024.
• On November 4, 2024, 1,000 shares were sold at a price of $63.11 per share.
• On November 5, 2024, 2,000 shares were sold at a price of $63.76 per share.
• On November 6, 2024, 3,482 shares were sold at a price of $71.14 per share.
• Following these transactions, Sprink directly owns 244,906 shares of common stock.
• Sprink also indirectly owns 1,200 shares of common stock through custodianships for three children.
• The reported sales were executed under a pre-arranged Rule 10b5-1 trading plan.
• Sprink also holds 50,253 time-based restricted stock units (RSUs) that vest in multiple installments until October 4, 2027.
• Additionally, Sprink holds 100,000 performance-based restricted stock units that vest on October 4, 2027, contingent on achieving specific performance goals.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of stock sales by an executive. The use of a 10b5-1 plan suggests the sales were pre-planned and not indicative of negative sentiment towards the company.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, potentially impacting the stock price, although these sales were pre-planned.

Industry Context

Executive stock sales are a common occurrence and are often part of personal financial planning. The use of a 10b5-1 plan suggests the sales were pre-planned and not based on insider information.

Comparison to Industry Standards

• Executive stock sales are a normal part of corporate governance.
• Many executives use 10b5-1 plans to avoid accusations of insider trading.
• Comparing Sprink's sales to those of executives at similar regional banks (e.g., Columbia Banking System, Umpqua Holdings) would provide context on the scale and frequency of such transactions.

Stakeholder Impact

• The stock sales could have a minor impact on shareholder sentiment, but the pre-planned nature of the sales mitigates potential concerns.

Key Dates