Form 4: Relay Therapeutics CFO Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan
SEC Form 4 Filing
Thomas Catinazzo, CFO of Relay Therapeutics, sold shares of common stock to cover income tax withholding obligations and under a pre-arranged 10b5-1 trading plan.
Summary
- On July 29, 2024, Thomas Catinazzo, the Chief Financial Officer of Relay Therapeutics, sold 1,702 shares of common stock at $8.85 per share to cover income tax withholding obligations upon the vesting of 5,723 restricted stock units (RSUs).
- Catinazzo also sold 9,078 shares at a weighted average price of $8.51, with prices ranging from $8.22 to $8.85, under a Rule 10b5-1 trading plan adopted on February 15, 2024.
- Following these transactions, Catinazzo beneficially owns 319,650 shares of Relay Therapeutics common stock, which includes 299,206 shares underlying RSUs.
Sentiment
Score: 5
Explanation: The document reflects routine transactions by a company insider. It doesn't indicate any significant positive or negative developments for the company.
Industry Context
Form 4 filings are standard practice and provide transparency into the transactions of company insiders. Sales to cover tax obligations upon vesting of RSUs and sales under 10b5-1 plans are common.
Comparison to Industry Standards
- Insider sales are a normal part of executive compensation, especially when tied to RSU vesting.
- The use of a 10b5-1 trading plan is a common practice to avoid accusations of insider trading, similar to practices at companies like Amgen or Vertex Pharmaceuticals where executives routinely use such plans.
- The size of the sale is relatively small compared to the total holdings, which is typical for tax-related sales.
Key Dates
| Date | Description |
|---|---|
| 02/15/2024 | Date the reporting person adopted a Rule 10b5-1 trading plan. |
| 07/27/2024 | Date of vesting of 5,723 shares of restricted stock units (RSUs). |
| 07/29/2024 | Date of the reported transactions (stock sales). |
| 07/31/2024 | Date of signature for the Form 4 filing. |
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