Form 4: Patrick Industries Executive Kip B. Ellis Reports Stock Transactions

Kip B. Ellis, President of Powersports/Housing at Patrick Industries, reported multiple transactions involving company stock, including vesting of performance-based grants and tax withholdings.

Summary

• Kip B. Ellis, a key executive at Patrick Industries, has reported several transactions involving the company's common stock.
• These transactions occurred on January 28, 2025, and include adjustments to previously awarded performance-based grants.
• 8,572 shares were adjusted due to the vesting of a performance-based grant from January 2022.
• 7,270 shares were returned to the company to cover tax obligations related to the vesting of a performance-based stock grant from January 2022.
• 11,666 shares were acquired as part of a performance-based grant that vests after three years upon achievement of company objectives.
• An additional 2,916 shares were granted as part of an annual management time-based grant, vesting in January 2028.
• Following these transactions, Mr. Ellis beneficially owns 147,744 shares of Patrick Industries common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative events. The vesting of performance-based grants is a positive sign, but the tax withholding is neutral.

Positives

• The vesting of performance-based grants indicates that the company is likely meeting its performance objectives.
• The annual management time-based grant suggests continued commitment to retaining key personnel.

Negatives

• The return of 7,270 shares to cover tax obligations reduces the executive's immediate holdings, although this is a standard practice.

Risks

• The vesting of performance-based grants is contingent on the company achieving its objectives, which introduces some risk.
• Future stock grants and vesting schedules could impact the executive's ownership and potentially the stock price.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• There are no direct quotes from management in this document, but the transactions reflect the company's compensation and incentive structure.

Industry Context

This filing is a routine disclosure of insider transactions, which is common in publicly traded companies. It provides transparency into executive compensation and ownership.

Comparison to Industry Standards

• Stock-based compensation and performance-based grants are standard practices in the industry to align executive interests with shareholder value.
• The vesting schedules and tax withholding practices are consistent with typical corporate governance standards.
• Other companies in the manufacturing and recreational vehicle sectors, such as Thor Industries and Winnebago Industries, also utilize similar compensation structures.

Stakeholder Impact

• Shareholders may view the vesting of performance-based grants as a positive sign of company performance.
• The transactions do not have a direct impact on employees, customers, suppliers, or creditors.

Next Steps

• The next vesting date for the annual management time-based grant is January 2028.

Key Dates

Keywords

Patrick Industries, PATK, stock transactions, insider trading, performance-based grants, stock vesting, executive compensation, Form 4, Kip B. Ellis