Form 4: inTEST Corp President & CEO Richard N. Grant, Jr. Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Richard N. Grant, Jr., President and CEO of inTEST Corp, sold 6,788 shares of common stock on August 27, 2024, to satisfy tax withholding obligations related to vesting restricted stock.
Summary
- On August 27, 2024, Richard N. Grant, Jr., the President and CEO of inTEST Corp, sold 6,788 shares of the company's common stock.
- The shares were sold at a weighted average price of $6.97, with individual transactions ranging from $6.90 to $7.08.
- The sale was executed to cover tax withholding obligations associated with the vesting of restricted stock.
- The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted on December 8, 2023.
- Following the transaction, Mr. Grant directly owns 164,929 shares of inTEST Corp common stock.
- Mr. Grant also holds employee stock options for a total of 185,216 shares at exercise prices ranging from $9.76 to $16.06, vesting in annual installments through 2025.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The transaction is a routine sale of shares for tax purposes under a pre-arranged plan, which is not inherently positive or negative.
Positives
- The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating it was planned well in advance and not based on immediate market conditions.
Risks
- Executive stock sales can sometimes be perceived negatively by investors, although this sale appears to be for routine tax obligations.
Industry Context
Executive stock sales are a common occurrence, particularly to cover tax obligations related to equity compensation. The use of a 10b5-1 plan suggests a proactive approach to managing these transactions.
Comparison to Industry Standards
- Executive compensation practices, including stock options and restricted stock units, are common across publicly traded companies.
- Sales to cover tax obligations are a normal part of executive financial planning.
- The use of 10b5-1 trading plans is a standard practice to avoid accusations of insider trading.
Stakeholder Impact
- The sale may have a minor impact on shareholders due to the small volume of shares sold.
Key Dates
| Date | Description |
|---|---|
| 2022-03-10 | First vesting date for 112,000 employee stock options at $10.62. |
| 2023-03-09 | First vesting date for 25,692 employee stock options at $9.76. |
| 2023-12-08 | Date the reporting person adopted a Rule 10b5-1 trading plan. |
| 2024-03-08 | First vesting date for 16,988 employee stock options at $16.06. |
| 2024-08-27 | Date of the transaction: sale of 6,788 shares of common stock. |
| 2025-03-06 | First vesting date for 30,536 employee stock options at $11.33. |
| 2031-03-09 | Expiration date for 112,000 employee stock options at $10.62. |
| 2032-03-08 | Expiration date for 25,692 employee stock options at $9.76. |
| 2033-03-07 | Expiration date for 16,988 employee stock options at $16.06. |
| 2034-03-05 | Expiration date for 30,536 employee stock options at $11.33. |
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