Form 4: Patrick Industries Officer's Equity Adjustments

Joel Duthie, Chief Legal Officer of Patrick Industries, reported adjustments to vested performance grants and new equity awards, resulting in a final beneficial ownership of 35,678 shares.

Summary

• Joel D. Duthie, Chief Legal Officer and Secretary of Patrick Industries Inc. (PATK), reported several equity transactions on January 27, 2026.
• An adjustment resulted in a reduction of 6,397 shares from a performance-based grant originally awarded in January 2023, which vested in January 2026.
• Duthie disposed of 2,577 shares of common stock at $129.93 per share to cover tax withholding obligations related to a vested performance-based stock grant from January 2023.
• He acquired 1,231 shares of common stock through an annual management time-based grant awarded in January 2026, scheduled to vest in January 2029.
• Duthie also acquired 4,926 shares of common stock through a new performance-based grant awarded in January 2026, which will vest after three years upon achieving target company objectives.
• Following these transactions, Duthie's direct beneficial ownership of Patrick Industries common stock stands at 35,678 shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing. While there was a net reduction in shares from prior grants and tax-related dispositions, the issuance of new equity awards indicates continued alignment of management incentives with company performance.

Positives

• Acquisition of 1,231 shares through a new annual management time-based grant, aligning management interests with long-term company performance.
• Acquisition of 4,926 shares through a new performance-based grant, incentivizing the achievement of future company objectives.

Negatives

• A reduction of 6,397 shares due to an adjustment to a previously awarded performance-based grant.
• Disposition of 2,577 shares to satisfy tax withholding obligations, which reduces direct beneficial ownership.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine insider transactions, such as the vesting of prior awards and the issuance of new equity grants, are common practices in publicly traded companies across various industries, including manufacturing and distribution like Patrick Industries. These actions are part of standard executive compensation packages designed to align management incentives with shareholder value.

Comparison to Industry Standards

• StockSavvy.ai observes that the structure of equity compensation, involving both time-based and performance-based grants, is a widely adopted practice among S&P 500 companies and industry peers in the building products sector.
• For instance, companies like LCI Industries (LCII) and Drew Industries (DW) often utilize similar long-term incentive plans to retain key executives and drive performance.
• The disposition of shares for tax withholding upon vesting is also a standard procedure for equity awards.

Stakeholder Impact

• Shareholders: The issuance of new equity grants could lead to minor dilution, but also aligns management's long-term interests with shareholder value creation.
• Employees: Reflects standard executive compensation practices, which can influence overall compensation philosophy within the company.

Next Steps

• Vesting of the annual management time-based grant in January 2029.
• Vesting of the performance-based grant after three years (January 2029) upon achievement of target company objectives.

Key Dates

Recommendation

This Form 4 details routine insider equity transactions related to compensation. It does not provide sufficient information to warrant a change in investment recommendation. The transactions reflect standard executive compensation practices and do not indicate any significant shift in company fundamentals or outlook that would impact a seasoned investor's decision.

Keywords

Patrick Industries, PATK, Joel Duthie, Form 4, insider transaction, beneficial ownership, equity grant, performance-based stock, time-based grant, stock award, Chief Legal Officer, Secretary