Form 4: Precision Biosciences CFO Executes Routine Share Sale for Tax Obligations

Precision Biosciences' Chief Financial Officer, John Alexander Kelly, sold 14,827 shares of common stock at $4.26 per share on July 3, 2025, solely to cover tax withholding obligations related to the vesting of restricted stock units.

Summary

• John Alexander Kelly, Chief Financial Officer of Precision Biosciences Inc. (DTIL), sold 14,827 shares of common stock on July 3, 2025.
• The shares were sold at a price of $4.26 per share.
• The transaction was a "sell-to-cover" sale, executed under a Rule 10b5-1 plan adopted on January 17, 2025.
• The purpose of the sale was to cover tax withholding obligations associated with the settlement of 44,368 Restricted Stock Units (RSUs) that vested on January 20, 2025.
• The settlement of the RSUs was approved by the Issuer's Compensation Committee.
• Following this transaction, John Alexander Kelly beneficially owns 73,485 shares of common stock.
• The reported person also acquired 2,056 shares under the Issuer's 2019 Employee Stock Purchase Plan at a weighted average price of $7.21.

Sentiment

Score: 5

Explanation: The transaction is a routine sell-to-cover for tax purposes, which is a neutral event. It does not indicate positive or negative sentiment about the company's future performance.

Positives

• The sale was a routine "sell-to-cover" transaction for tax obligations, not a discretionary sale, indicating no negative sentiment from the CFO regarding the company's prospects.
• The transaction was executed under a pre-arranged Rule 10b5-1 plan, demonstrating planned and compliant insider trading.
• The CFO acquired 2,056 shares under the Employee Stock Purchase Plan at a weighted average price of $7.21, indicating continued participation in employee ownership programs.

Negatives

• A sale of shares by an executive, even for tax purposes, reduces their direct ownership stake in the company.

Future Outlook

NA

Management Comments

• The Reporting Person did not sell or otherwise dispose of shares reported on this Form 4 for any reason other than to cover required taxes and fees.

Industry Context

This Form 4 filing reflects a routine insider transaction common in the biotechnology or pharmaceutical industry, where executive compensation often includes equity awards like Restricted Stock Units (RSUs). Sell-to-cover transactions are standard practice for executives to manage tax liabilities upon RSU vesting, and do not typically indicate a change in company fundamentals or strategic direction within the industry.

Stakeholder Impact

• Shareholders: The sale of shares by a CFO, even for tax purposes, slightly reduces the overall ownership percentage of other shareholders, though the impact from a routine sell-to-cover is generally minimal.
• Employees: The vesting of RSUs and acquisition of shares through the Employee Stock Purchase Plan (ESPP) indicates ongoing equity compensation programs for employees, which can be a positive for retention and alignment of interests.

Key Dates

Keywords

Precision Biosciences, DTIL, Form 4, Insider Trading, John Alexander Kelly, CFO, Sell-to-Cover, Restricted Stock Units, RSU, Rule 10b5-1, Employee Stock Purchase Plan, ESPP, Stock Sale, Tax Withholding