Form 4: HealthEquity Founder Stephen Neeleman Executes Stock Option Sales Under 10b5-1 Plan

Stephen Neeleman, HealthEquity's Founder and Vice Chairman, executed stock option exercises and sales on June 6th and 7th, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Stephen Neeleman, the Founder and Vice Chairman of HealthEquity, Inc., reported transactions involving the company's stock on June 6th and 7th, 2024.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on December 8, 2023.
• On June 6, 2024, Neeleman exercised options to acquire 7,484 shares at $14 and sold the same amount at a weighted average price of $85.0451, with prices ranging from $85.00 to $85.43.
• On June 7, 2024, he exercised options to acquire 2,080 shares at $14 and sold the same amount at a weighted average price of $85.0118, with prices ranging from $85.00 to $85.05.
• Following these transactions, Neeleman directly owns 90,515 shares of common stock.
• He also indirectly owns 559,235 shares through the Stephen and Christine Neeleman Trust and 203,000 shares through Neeleman Family Holdings, LLC.
• Neeleman disclaims beneficial ownership of shares held by Neeleman Family Holdings, LLC except to the extent of his pecuniary interest.
• He directly holds options to purchase 69,600 shares at $14 expiring on July 30, 2024, 19,897 shares at $41.28 expiring on March 27, 2027, 14,228 shares at $61.72 expiring on March 27, 2028 and 15,337 shares at $73.61 expiring on March 26, 2029.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions are part of a pre-planned trading strategy and do not necessarily indicate a change in the executive's confidence in the company.

Positives

• The transactions were executed under a pre-arranged 10b5-1 trading plan, which can provide transparency and reduce concerns about insider trading.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although the existence of a 10b5-1 plan mitigates this concern.

Industry Context

Executive stock transactions are common and closely watched in the healthcare technology industry. The use of a 10b5-1 plan is a standard practice to avoid insider trading concerns.

Comparison to Industry Standards

• Comparing Neeleman's transactions to other executives in similar healthcare technology companies, the use of a 10b5-1 plan is a common practice.
• Companies like Teladoc and Cerner (now Oracle Health) also see regular Form 4 filings related to executive stock options and sales.
• The size of the transactions is relatively modest compared to the overall market capitalization of HealthEquity.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the potential dilution from option exercises, but the sales are unlikely to significantly affect the stock price given the pre-planned nature and relatively small volume.

Key Dates