Form 4: Coastal Financial Director Sells Shares Under 10b5-1 Plan

Coastal Financial Corp Director Stephan Klee sold 4,350 shares of common stock for $109.14 per share under a pre-arranged 10b5-1 plan.

Summary

• Stephan Klee, a Director of Coastal Financial Corp (CCB), reported a sale of common stock.
• The transaction involved 4,350 shares of common stock.
• The shares were sold at a price of $109.14 per share.
• The total value of the shares sold was approximately $474,700.
• The transaction occurred on September 15, 2025.
• The sale was executed pursuant to a Rule 10b5-1(c) plan.
• Following the transaction, Stephan Klee directly beneficially owns 1,661 shares of common stock.
• Additionally, 1,119 shares are indirectly beneficially owned by SK Trail LLC.
• The directly owned shares include 1,661 restricted stock units that vest one day prior to the issuer's 2026 Annual Shareholder Meeting.

Sentiment

Score: 5

Explanation: The transaction is a pre-arranged sale under a 10b5-1 plan, which typically indicates a planned liquidity event rather than a reaction to new information. While it's an insider sale, the pre-planned nature makes it neutral in terms of immediate sentiment.

Positives

• The sale was conducted under a Rule 10b5-1(c) plan, indicating a pre-arranged, non-discretionary transaction rather than a reaction to recent company performance.
• Stephan Klee retains significant beneficial ownership, including 1,661 shares directly and 1,119 shares indirectly through SK Trail LLC, demonstrating continued alignment with shareholder interests.

Negatives

• A director selling shares, even under a pre-arranged plan, can sometimes be perceived as a lack of confidence by some investors, though the 10b5-1 plan mitigates this.
• The transaction reduces the director's direct beneficial ownership in the company.

Future Outlook

This filing, a Form 4, reports an insider transaction and does not provide forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This Form 4 filing reports an individual insider transaction and does not provide information relevant to broader industry trends or competitor analysis.

Related Party Transactions

• Indirect beneficial ownership of 1,119 shares by SK Trail LLC, which is associated with Stephan Klee.

Stakeholder Impact

• Shareholders: May observe a director reducing direct holdings, though mitigated by the 10b5-1 plan.
• Employees, Customers, Suppliers, Creditors: No direct impact from this specific insider transaction.

Next Steps

• Vesting of 1,661 restricted common stock shares one day prior to the issuer's 2026 Annual Shareholder Meeting.

Key Dates

Recommendation

The sale by Director Stephan Klee was executed under a pre-arranged Rule 10b5-1 plan, which suggests a planned liquidity event rather than a discretionary sale based on new material information. While insider selling can sometimes be viewed negatively, the pre-planned nature and the director's retained beneficial ownership (2,780 shares total) suggest this transaction alone does not warrant a change from a 'hold' position. Investors should consider this in the broader context of the company's financial performance and strategic outlook.

Keywords

Coastal Financial Corp, CCB, Stephan Klee, Insider Trading, Form 4, Director Sale, Stock Sale, 10b5-1 Plan, Equity Transaction, Beneficial Ownership