Form 4: Knowles VP Controller Exercises Options, Sells Shares

Knowles Corp's VP Controller, Air A. Bastarrica Jr., exercised stock options and subsequently sold a portion of the acquired shares, along with shares withheld for tax liabilities.

Summary

• Air A. Bastarrica Jr., Vice President, Controller of Knowles Corp, reported multiple transactions on February 9, 2026.
• Exercised 11,924 non-qualified stock options at an exercise price of $21.14 per share, acquiring common stock.
• Exercised 8,143 non-qualified stock options at an exercise price of $20.60 per share, acquiring common stock.
• Sold 2,433 shares of common stock at $26.82 per share.
• Sold 9,567 shares of common stock at $26.75 per share.
• Disposed of 10,304 shares of common stock at $27.24 per share to cover the option exercise price and tax liability.
• Disposed of 6,958 shares of common stock at $27.24 per share to cover the option exercise price and tax liability.
• Following these transactions, the reporting person directly beneficially owns 51,005 shares of Knowles Corp common stock.
• All derivative securities (stock options) held by the reporting person were reduced to 0 after the exercises.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. While there is a net reduction in direct beneficial ownership, the transactions primarily reflect the routine exercise of in-the-money stock options and sales to cover associated costs and taxes, rather than a strong directional signal about the company's future.

Positives

• The exercise of non-qualified stock options indicates that the options were in-the-money, allowing the executive to acquire shares at a lower price than the market value at the time of exercise.

Negatives

• A net reduction in the direct beneficial ownership of common stock by a key executive, even if partially for tax purposes, could be perceived as a slight negative by some investors.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that Form 4 filings detailing executive stock option exercises and subsequent share sales are routine occurrences in publicly traded companies. These transactions are typically part of an executive's compensation plan and often involve selling shares to cover tax obligations and exercise costs, as well as for personal liquidity.

Corporate Governance

Stakeholder Impact

• Shareholders: The transactions represent a routine part of executive compensation and liquidity management. While there is a net sale, it is not of a magnitude that typically signals a significant change in company fundamentals or executive confidence.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions involving the exercise of stock options and subsequent share sales, largely to cover tax obligations and exercise costs. Such transactions are common and generally do not indicate a fundamental shift in the company's prospects or warrant a change in investment recommendation. A seasoned investor would likely view this as a standard compensation event rather than a strong buy or sell signal.

Keywords

Knowles Corp, KN, Insider Transaction, Form 4, Stock Options, Executive Compensation, Share Sale