Form 4: Health Catalyst CFO Sells Shares to Cover Tax Obligations

Jason Alger, CFO of Health Catalyst, Inc., sold 1,165 shares of common stock on September 3, 2024, to cover tax withholding obligations related to vesting restricted stock units.

Summary

• On September 3, 2024, Jason Alger, the Chief Financial Officer of Health Catalyst, Inc. (HCAT), sold 1,165 shares of the company's common stock.
• The sale was executed at a price of $7.2691 per share.
• This transaction was conducted to cover tax withholding obligations associated with the vesting of restricted stock units.
• Following the transaction, Alger directly owns 117,005 shares of Health Catalyst common stock.

Sentiment

Score: 6

Explanation: The document reflects a routine transaction (sell to cover taxes) and doesn't indicate any significant positive or negative sentiment. It's a neutral event from an investment perspective.

Management Comments

• The sale is mandated by the Issuer's election under its equity incentive plans to require the satisfaction of tax withholding obligations to be funded by a 'sell to cover' transaction and does not represent a discretionary trade by the Reporting Person.

Industry Context

Executive stock sales are a common occurrence, particularly to cover tax obligations related to equity compensation. The impact on the stock price is usually minimal unless the sale is substantial or indicative of a broader trend among company insiders.

Comparison to Industry Standards

• Executive compensation practices, including equity grants and subsequent sales for tax purposes, are standard across publicly traded companies.
• Companies like Cerner (now Oracle Health) and Allscripts also utilize equity compensation, and their executives similarly engage in sell-to-cover transactions.
• The scale of this transaction is small relative to the overall market capitalization of Health Catalyst, suggesting it's a routine event.

Stakeholder Impact

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

Key Dates