Form 4: Paycom CEO Chad Richison Sells Shares Under 10b5-1 Trading Plan
SEC Form 4
Paycom's CEO, Chad Richison, executed multiple sales of company stock between October 11 and October 14, 2024, under a pre-arranged 10b5-1 trading plan.
Summary
- Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., sold shares of Paycom common stock between October 11 and October 14, 2024.
- The sales were executed under a joint Rule 10b5-1 trading plan adopted on February 16, 2024, by Richison and Ernest Group, Inc.
- On October 11, 2024, Richison sold 1,250 shares at a weighted average price of $163.28 and 700 shares at a weighted average price of $164.26.
- On October 14, 2024, Richison sold 9 shares at $161.31, 45 shares at $162.11, 279 shares at $163.11, and 1,617 shares at $163.94.
- Following these transactions, Richison directly owns 2,774,310 shares of Paycom common stock.
- Richison may be deemed to beneficially own shares held by Ernest Group, Inc., Faye Penelope Richison 2023 Irrevocable Trust, Rome West Pedersen 2023 Irrevocable Trust, Lane West Richison 2022 Irrevocable Trust, Kase Gabriel Richison 2022 Irrevocable Trust, Sage Elizabeth Richison 2022 Irrevocable Trust, Charles Banks Pedersen 2022 Irrevocable Trust, Ava L. Richison 2012 Irrevocable Trust, Ian D. Richison 2012 Irrevocable Trust, Abrie R. Richison 2012 Irrevocable Trust and Charis Michelle Richison Trust.
- The reporting person is the sole director of Ernest Group, and Ernest Group is wholly owned by the reporting person and certain trusts for the reporting person's children, for which the reporting person serves as trustee.
Sentiment
Score: 5
Explanation: The document is a standard SEC filing reporting stock sales by an insider. It doesn't inherently convey positive or negative sentiment, but the market may react based on the size and frequency of the sales.
Future Outlook
The sales were conducted under a pre-arranged 10b5-1 trading plan, suggesting further transactions may occur in the future as part of the plan.
Industry Context
Insider sales are common and often pre-planned, but investors monitor them for signals about management's confidence in the company's future prospects.
Stakeholder Impact
- Shareholders may react to the news of the CEO selling shares, although the pre-planned nature of the sales mitigates potential concerns.
Key Dates
| Date | Description |
|---|---|
| 02/16/2024 | Date of adoption of the joint Rule 10b5-1 trading plan by the reporting person and Ernest Group, Inc. |
| 10/11/2024 | Date of first reported transaction: sale of Paycom common stock. |
| 10/14/2024 | Date of last reported transaction: sale of Paycom common stock. |
| 10/15/2024 | Date of Form 4 filing. |
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