Form 4: Health Catalyst CPO Sells Shares for Tax Obligations

Health Catalyst's Chief People Officer, Linda Llewelyn, disposed of 13,836 shares of common stock to cover tax withholding obligations related to vested Restricted Stock Units.

Summary

• Linda Llewelyn, Chief People Officer of Health Catalyst, Inc. (HCAT), reported a transaction involving the company's common stock.
• On March 2, 2026, 13,836 shares of common stock were disposed of.
• The shares were sold at a price of $1.6599 per share.
• This transaction was a 'sell to cover' to satisfy tax withholding obligations in connection with the vesting of Issuer's Restricted Stock Units.
• The sale was mandated by the Issuer's equity incentive plans and does not represent a discretionary trade by the reporting person.
• Following this transaction, Linda Llewelyn beneficially owns 329,651 shares of Health Catalyst common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as it is a routine, non-discretionary transaction for tax purposes related to equity compensation, rather than a voluntary sale reflecting a change in sentiment.

Positives

• The transaction was a non-discretionary 'sell to cover' to meet tax withholding obligations, not a voluntary sale by the officer, which typically indicates no change in management's confidence.

Negatives

• A total of 13,836 shares of common stock were disposed of by a key officer, reducing insider ownership.

Future Outlook

NA

Management Comments

• "Represents the number of shares required to be sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of Issuer's Restricted Stock Units."
• "This 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

StockSavvy.ai notes that 'sell to cover' transactions are standard practice for executives receiving equity compensation, particularly Restricted Stock Units (RSUs), and are generally not indicative of a change in management's confidence in the company's future or its operational performance.

Comparison to Industry Standards

• This 'sell to cover' transaction aligns with common industry practices for managing tax obligations arising from the vesting of restricted stock units (RSUs) for executives across various sectors, including technology and healthcare.
• Many public companies, such as Microsoft, Apple, and Google, utilize similar mechanisms in their equity incentive plans to facilitate tax payments for executive stock awards, making this a routine event.

Stakeholder Impact

• Shareholders: A minor increase in the public float due to the disposition of shares, but the non-discretionary nature mitigates concerns about insider selling.
• Employees: No direct impact on general employees.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary 'sell to cover' transaction by a corporate officer to satisfy tax obligations on vested equity. Such transactions are common and do not typically signal a change in the company's fundamentals or the officer's confidence, thus not warranting a change in investment stance based solely on this filing.

Keywords

Health Catalyst, HCAT, Form 4, insider transaction, stock sale, tax withholding, restricted stock units, RSU, Linda Llewelyn, Chief People Officer