Form 4: Photronics Director Exercises and Sells Shares Under Pre-Arranged Plan

A director at Photronics Inc., Kang Jyh Lee, exercised non-qualified stock options and subsequently sold an equivalent number of common shares, as disclosed in a recent SEC Form 4 filing.

Summary

• Kang Jyh Lee, a Director at Photronics Inc. (PLAB), executed a transaction on June 18, 2025.
• The transaction involved the exercise of 28,118 non-qualified stock options at an exercise price of $12.13 per share. These options were granted on January 4, 2016, and had a graded vesting schedule.
• Immediately following the exercise, Mr. Lee sold 28,118 shares of Photronics common stock at a weighted average price of $18.399 per share. The sales occurred in multiple transactions ranging from $18.30 to $18.53 per share.
• The reported transactions were made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged sale.
• Following these transactions, Mr. Lee directly beneficially owns 532,100 shares of common stock and 4,882 non-qualified stock options.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While an insider sale can be perceived negatively, the transaction was part of a pre-arranged 10b5-1 plan, which mitigates concerns about market timing. The exercise of options also indicates the stock price is well above the exercise price, which is positive for the insider.

Positives

• The exercise of non-qualified stock options at $12.13 indicates that the stock price ($18.399 sale price) is significantly above the exercise price, representing a gain for the insider.
• The transaction was conducted under a Rule 10b5-1(c) plan, suggesting a pre-scheduled and not necessarily market-timing sale.

Negatives

• The sale of 28,118 shares by a director, even if pre-planned, represents a reduction in direct insider ownership of common stock.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The sale of shares by a director could be interpreted as a slight negative signal regarding future stock performance, though the 10b5-1 plan mitigates this. The overall impact is likely minimal given the transaction size relative to total shares outstanding and the pre-planned nature.

Key Dates

Keywords

Photronics Inc., PLAB, SEC Form 4, Insider Trading, Stock Options, Option Exercise, Share Sale, Director Transaction, Kang Jyh Lee, Rule 10b5-1