Form 4: Pure Storage Executive John Colgrove Sells Shares Under 10b5-1 Trading Plan

Chief Visionary Officer John Colgrove of Pure Storage, Inc. sold shares of Class A Common Stock on October 21, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• John Colgrove, Chief Visionary Officer of Pure Storage, Inc., reported changes in beneficial ownership to the SEC.
• On October 21, 2024, Colgrove sold 96,846 shares of Class A Common Stock at an average price of $57.31 and 3,154 shares at an average price of $57.75.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on April 17, 2024.
• Following the reported transactions, Colgrove directly owns 7,316,722 shares of Class A Common Stock.
• Colgrove also indirectly owns shares through various trusts, including The Colgrove Family Charitable Remainder Trust (300,000 shares), Colgrove Family Living Trust (701,959 shares), Eric Edward Colgrove Irrevocable Trust (2,765,000 shares), and Richard Winston Colgrove Irrevocable Trust (2,765,000 shares).

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports stock sales under a pre-arranged trading plan, which is a common practice. There is no indication of positive or negative sentiment towards the company's prospects.

Industry Context

Executive stock sales are a common occurrence and are often planned in advance using Rule 10b5-1 trading plans to avoid accusations of insider trading. The volume and context of these sales are monitored by investors to gauge executive sentiment.

Comparison to Industry Standards

• Comparing Colgrove's transactions to other executives in similar tech companies like NetApp or Dell, the use of 10b5-1 plans is a standard practice.
• The size of the transactions is relatively small compared to the overall holdings, suggesting routine diversification rather than a major shift in sentiment.
• Similar sales patterns can be observed in filings from executives at companies like Snowflake or CrowdStrike.

Stakeholder Impact

• The stock sale may have a minor impact on shareholders due to the increased supply of shares in the market, but the effect is likely to be minimal given the relatively small size of the transaction compared to the total outstanding shares.
• The sale does not directly impact employees, customers, suppliers, or creditors.

Key Dates