Form 4: SMART Global Holdings Executive Vice President Jack A. Pacheco Reports Stock Option Exercise and Share Sale

Executive Vice President Jack A. Pacheco of SMART Global Holdings, Inc. exercised stock options and sold shares on August 20, 2024, according to a Form 4 filing with the SEC.

Summary

• On August 20, 2024, Jack A. Pacheco, an Executive Vice President at SMART Global Holdings, Inc., exercised stock options to acquire 13,333 ordinary shares at a price of $9.195 per share.
• Simultaneously, Pacheco sold 13,333 ordinary shares at a weighted average price of $21.1372 per share, with individual sales prices ranging from $20.88 to $21.30.
• Following these transactions, Pacheco directly owns 211,896 ordinary shares and holds options for 53,334 shares.
• The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on April 26, 2024.
• The stock options vested and became exercisable starting March 12, 2021, with the remaining shares vesting monthly over three years.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it simply reports an executive's stock transactions, which are part of normal executive compensation and financial planning. There is no indication of positive or negative implications for the company.

Industry Context

This filing is a routine disclosure of insider transactions. It provides transparency into the trading activities of company executives, which is important for investors to assess management's confidence in the company's prospects. Similar filings are common across publicly traded companies.

Comparison to Industry Standards

• Executive stock option exercises and sales are a common practice in publicly traded companies, particularly in the technology sector.
• The use of Rule 10b5-1 trading plans is a standard method for insiders to sell shares without being accused of trading on non-public information; companies like Apple, Microsoft, and Intel all have executives who utilize these plans.
• The vesting schedule described is typical for employee stock options, aligning executive compensation with long-term company performance.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership, but the effect is likely minimal given the relatively small number of shares involved.
• Employees may view the executive's stock sale as a personal financial decision without significant implications for the company's operations or prospects.

Key Dates