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

Jason Alger, CFO of Health Catalyst, Inc., sold 1,238 shares of common stock on June 3, 2024, to cover tax withholding obligations related to vesting restricted stock units.

Summary

• On June 3, 2024, Jason Alger, the Chief Financial Officer of Health Catalyst, Inc., sold 1,238 shares of the company's common stock.
• The sale was executed at a price of $6.5333 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 120,993 shares of Health Catalyst, Inc.
• The sale was 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.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine sale of shares to cover tax obligations and does not reflect a change in the executive's confidence in the company.

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

Sales of shares to cover tax obligations upon vesting of restricted stock units are a common practice among corporate executives. This transaction is not necessarily indicative of the executive's sentiment towards the company's future prospects, but rather a standard procedure to manage tax liabilities.

Comparison to Industry Standards

• Similar 'sell to cover' transactions are frequently observed among executives at publicly traded companies like Cerner (now Oracle Health), Veeva Systems, and athenahealth.
• These transactions are generally viewed as routine and are not typically interpreted as a sign of concern about the company's performance.
• The number of shares sold is relatively small compared to Alger's total holdings, which is consistent with typical tax withholding practices.

Stakeholder Impact

• The transaction is unlikely to have a significant impact on shareholders, as it is a routine sale to cover tax obligations.
• Employees may be indirectly affected by the company's equity incentive plans, which include provisions for tax withholding.

Key Dates