Form 4: Knowles HR Chief Exercises Options, Sells Shares

Knowles Corp's SVP, Chief HR Officer, Raymond D. Cabrera, exercised stock options and subsequently sold shares to cover the exercise price and tax liabilities.

Summary

• Raymond D. Cabrera, SVP, Chief HR Officer of Knowles Corp, exercised 24,116 non-qualified stock options on August 25, 2025, at an exercise price of $16.07 per share.
• Following the exercise, Cabrera disposed of 20,795 shares of Common Stock at a price of $21.35 per share.
• This disposition was made to cover the option exercise price and associated tax liabilities.
• After these transactions, Cabrera beneficially owns 114,607 shares of Knowles Corp Common Stock.
• The derivative securities (options) related to this transaction are now fully exercised, with 0 remaining.

Sentiment

Score: 6

Explanation: The transaction is largely neutral, representing a routine executive compensation event. The exercise of options implies confidence in the stock's value above the strike price, while the subsequent sale is for tax and exercise cost coverage, not necessarily a negative signal about future performance.

Positives

• The exercise of 24,116 stock options indicates that the company's stock price was above the exercise price of $16.07, allowing the officer to realize a gain.
• The sale price of $21.35 per share for the disposed shares is higher than the exercise price, demonstrating a positive return on the exercised options.

Negatives

• The disposition of 20,795 shares reduces the direct beneficial ownership of Common Stock by the SVP, Chief HR Officer.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may view the option exercise as a minor positive signal of management's belief in the stock's value, balanced by the routine sale for tax purposes.

Key Dates

Recommendation

The filing details a routine insider transaction involving the exercise of stock options and a subsequent sale of shares to cover the exercise price and tax liabilities. This is a common practice and does not typically signal a change in the company's fundamental outlook or management's confidence beyond the initial grant. Therefore, it does not provide a strong basis for a 'buy' or 'sell' recommendation, suggesting a 'hold' position for existing investors.

Keywords

Knowles Corp, KN, SEC Form 4, Insider Trading, Stock Options, Raymond D. Cabrera, Share Sale, Executive Compensation