Form 4: Natera CEO Steven Chapman Sells Shares to Cover Tax Obligations

Natera's CEO, Steven Chapman, sold 6,203 shares of common stock on April 28, 2025, to satisfy tax withholding obligations related to vesting RSUs.

Summary

• On April 28, 2025, Steven Leonard Chapman, CEO and President of Natera, Inc., sold 6,203 shares of Natera's common stock.
• The sale was executed at a price of $152.1824 per share.
• The transaction was conducted to cover tax withholding and remittance obligations associated with the vesting of Restricted Stock Units (RSUs).
• The sale was made pursuant to a pre-arranged written instruction intended to comply with Rule 10b5-1(c) under the Exchange Act.
• Following the transaction, Chapman directly owns 192,162 shares of Natera common stock.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a routine transaction. The sale is for tax purposes, which is a normal part of executive compensation. There is no indication of negative sentiment, but also no particularly positive news.

Industry Context

Sales of shares to cover tax obligations upon vesting of RSUs are a common practice among executives of publicly traded companies. These transactions are often pre-planned under Rule 10b5-1 trading plans to avoid accusations of insider trading.

Comparison to Industry Standards

• Executive compensation packages often include RSUs, which vest over time and are taxed as income when they vest.
• To cover these tax liabilities, executives frequently sell a portion of the shares they receive upon vesting.
• Rule 10b5-1 plans are a standard tool used by corporate insiders to schedule stock sales in advance, ensuring compliance with insider trading regulations.
• Comparable companies such as Exact Sciences and Guardant Health also see similar transactions from their executives.

Stakeholder Impact

• The sale of shares by the CEO could have a minor, temporary impact on the stock price, but is unlikely to be significant given the routine nature of the transaction.
• The transaction does not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Natera, NTRA, Steven Chapman, CEO, Stock Sale, Form 4, RSUs, Rule 10b5-1(c), Tax Obligations, Insider Trading