Form 4: Graham Corp. Executive Alan Smith Reports Routine Stock Transactions Following RSU Vesting

Graham Corporation's VP & General Manager, Alan E. Smith, reported the acquisition of common stock through restricted stock unit vesting and subsequent sale of shares to cover tax obligations.

Summary

• Alan E. Smith, VP & General Manager Batavia of Graham Corporation (GHM), reported transactions on June 4, 2025, as detailed in a Form 4 filing.
• He acquired 1,291 shares of common stock upon the vesting of restricted stock units (RSUs) at a price of $0, as these units convert into common stock on a one-for-one basis.
• Concurrently, 607 shares of common stock were disposed of at a price of $40.89 per share to satisfy tax withholding obligations related to the RSU vesting.
• Following these reported transactions, Mr. Smith beneficially owns 62,560 shares of Graham Corporation common stock.
• He also holds 2,582 restricted stock units from an original grant, with the balance vesting in substantially equal installments on June 4, 2026, and June 4, 2027.
• Additionally, Mr. Smith holds 2,375 restricted stock units from a separate grant, with the balance vesting on May 17, 2026, after two-thirds vested in prior installments on May 17, 2024, and May 17, 2025.
• A further 2,591 restricted stock units are held, scheduled to vest one-third on each of June 2, 2026, June 2, 2027, and June 2, 2028.

Sentiment

Score: 6

Explanation: The document is a routine insider transaction report. The vesting of RSUs is a positive sign of executive retention and alignment, but the sale for tax purposes is neutral. No significant positive or negative news is conveyed beyond the mechanics of compensation, leading to a moderately positive sentiment due to continued executive equity alignment.

Positives

• The vesting of restricted stock units indicates the continued long-term incentive alignment between the executive and the company's shareholders.
• The acquisition of shares through RSU vesting increases the executive's direct ownership interest in Graham Corporation.

Negatives

• A portion of the vested shares was sold to cover tax withholding obligations, which is a common practice but reduces the executive's net share accumulation from the vesting event.

Future Outlook

The document primarily details past transactions and future vesting schedules for restricted stock units, indicating a continued long-term incentive structure for the executive.

Industry Context

This Form 4 filing is a routine disclosure of insider stock transactions, common across all publicly traded companies. It reflects standard executive compensation practices involving equity awards like Restricted Stock Units (RSUs) and the associated tax implications upon vesting. Such filings provide transparency into executive ownership and alignment with shareholder interests.

Comparison to Industry Standards

• The practice of granting Restricted Stock Units (RSUs) as part of executive compensation is a standard industry practice across various sectors, including manufacturing and industrial companies like Graham Corp.
• The subsequent sale of a portion of vested shares to cover tax obligations is also a common and expected procedure in executive equity compensation plans, aligning with typical corporate governance practices.
• This filing does not provide specific financial or operational results for direct comparison to industry benchmarks or competitors, as it is solely focused on insider stock transactions.

Stakeholder Impact

• Shareholders: The report indicates an executive's continued equity ownership and participation in long-term incentive plans, which generally aligns management interests with shareholder value creation.
• Employees: No direct impact on general employees is indicated by this filing, as it pertains to an individual executive's compensation.

Next Steps

• Future vesting of remaining restricted stock units for Alan E. Smith on June 4, 2026, and June 4, 2027 (for the 06/04/2025 grant).
• Future vesting of remaining restricted stock units for Alan E. Smith on May 17, 2026 (for the 5/17/2024/2025 grant).
• Future vesting of remaining restricted stock units for Alan E. Smith on June 2, 2026, June 2, 2027, and June 2, 2028 (for the 6/2/2026/2027/2028 grant).

Key Dates

Recommendation

Keywords

Graham Corp, GHM, SEC Form 4, Insider Trading, Restricted Stock Units, RSU Vesting, Stock Ownership, Executive Compensation, Alan E. Smith