Form 4: Health Catalyst COO Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan

Daniel LeSueur, COO of Health Catalyst, Inc., sold shares to cover tax obligations and pursuant to a pre-arranged trading plan.

Summary

• Daniel LeSueur, the Chief Operating Officer of Health Catalyst, Inc., reported the sale of company stock on September 3rd and 4th, 2024.
• On September 3rd, 1,761 shares were sold at $7.2691 per share to cover tax withholding obligations related to the vesting of restricted stock units.
• On September 4th, 8,137 shares were sold at $7.5849 per share under a pre-arranged trading plan established on March 7, 2024, in accordance with Rule 10b5-1.
• Following these transactions, LeSueur directly owns 140,108 shares of Health Catalyst, Inc.

Sentiment

Score: 6

Explanation: The document reflects routine transactions (tax obligation coverage and pre-planned sales). It doesn't indicate any specific positive or negative sentiment about the company's performance.

Positives

• The sales to cover tax obligations are part of the company's standard equity incentive plan, indicating a structured approach to employee compensation.
• The sales under the 10b5-1 trading plan were pre-arranged, suggesting they were not based on any recent insider information.

Future Outlook

The document does not contain any specific forward-looking statements regarding the company's future performance.

Industry Context

Sales by company executives are a normal part of corporate governance. Sales to cover tax obligations are common when restricted stock units vest. Rule 10b5-1 plans are frequently used by insiders to sell shares over time to avoid accusations of trading on inside information.

Comparison to Industry Standards

• Executive stock sales are a common occurrence in publicly traded companies.
• Companies like Cerner (now Oracle Health) and Epic Systems, though privately held, would likely have similar mechanisms for equity compensation and tax obligation management for their executives if they were public.
• The use of 10b5-1 trading plans is a standard practice among executives at companies like Teladoc and UnitedHealth Group to manage their stock sales in a compliant manner.

Stakeholder Impact

• The stock sales could have a minor, temporary impact on the stock price, but the pre-planned nature of the sales mitigates potential negative perceptions.
• The transactions do not appear to have a significant impact on employees, customers, suppliers, or creditors.

Key Dates