Form 4: Precision BioSciences Executive Smith J. Jefferson Reports Stock Transactions

Chief Research Officer Smith J. Jefferson of Precision BioSciences reports the vesting of restricted stock units and subsequent sale of shares to cover tax obligations.

Summary

• On March 3, 2025, Smith J. Jefferson, Chief Research Officer of Precision BioSciences, reported the vesting of 519 Restricted Stock Units (RSUs).
• Following the vesting, Jefferson sold 154 shares of common stock on March 4, 2025, at a price of $4.91 per share to cover tax withholding obligations.
• After these transactions, Jefferson directly owns 87,805 shares of common stock and indirectly owns 7,931 shares through a Charitable Remainder Unitrust.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on April 25, 2024.
• The RSUs were granted on March 3, 2022, and vested in three equal annual installments, completing on March 3, 2025.

Sentiment

Score: 7

Explanation: The document reflects routine executive stock transactions, which are neutral to slightly positive as they indicate continued alignment with shareholder interests through stock ownership. The use of a 10b5-1 plan adds a layer of transparency and reduces concerns about insider trading.

Positives

• The transactions were part of a pre-planned Rule 10b5-1 trading plan, indicating no opportunistic trading.
• The sale of shares was explicitly for covering tax obligations, suggesting no change in the executive's long-term outlook on the company.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

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

Executive stock transactions are common in publicly traded companies, and the reporting is a standard regulatory requirement. The use of a 10b5-1 plan is a common practice to avoid insider trading accusations.

Comparison to Industry Standards

• Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
• The vesting schedule of the RSUs (three equal annual installments) is a typical vesting arrangement.
• Selling shares to cover tax obligations upon vesting of RSUs is a standard practice among executives in publicly traded companies.
• Comparable companies such as CRISPR Therapeutics, Editas Medicine, and Intellia Therapeutics also have executives who regularly report stock transactions via Form 4 filings.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders, as they are routine and pre-planned.
• Shareholders may view the transactions as neutral, given the use of a 10b5-1 plan and the explanation that sales were solely for tax obligations.

Key Dates