Form 4: Relay Therapeutics Executive Peter Rahmer Sells Shares to Cover Tax Obligations and Under 10b5-1 Trading Plan

Peter Rahmer, Chief Corporate Development Officer of Relay Therapeutics, sold shares of common stock between July 29 and July 31, 2024, to cover tax obligations and under a pre-arranged 10b5-1 trading plan.

Summary

• Peter Rahmer, Chief Corporate Development Officer of Relay Therapeutics, sold shares of the company's common stock between July 29 and July 31, 2024.
• The sales were executed to cover income tax withholding obligations upon the vesting of restricted stock units (RSUs) and under a Rule 10b5-1 trading plan.
• On July 29, 2024, Rahmer sold 1,359 shares at $8.85 and 12,164 shares at a weighted average price of $8.51.
• On July 30, 2024, he sold 15,128 shares at a weighted average price of $8.28.
• On July 31, 2024, he sold 13,708 shares at a weighted average price of $8.19.
• Following these transactions, Rahmer beneficially owns 391,929 shares of Relay Therapeutics common stock, including 377,937 shares underlying RSUs.
• The Rule 10b5-1 trading plan was adopted on February 22, 2024.

Sentiment

Score: 5

Explanation: The document is neutral as it simply reports stock sales by an executive. The sales are partly due to tax obligations and a pre-arranged trading plan, which are common and don't necessarily reflect a negative view of the company.

Industry Context

Insider sales are a common occurrence, especially when related to tax obligations from vesting equity compensation or pre-planned trading programs like Rule 10b5-1 plans. These sales are often viewed in the context of overall insider sentiment and company performance.

Comparison to Industry Standards

• Rule 10b5-1 trading plans are a common practice among corporate executives to diversify their holdings and avoid accusations of insider trading.
• The volume of shares sold is relatively small compared to the total outstanding shares of Relay Therapeutics.
• Similar sales are often seen in other biotech companies where executives receive a significant portion of their compensation in stock options and RSUs, for example, executives at companies like Amgen or Gilead regularly execute trades under 10b5-1 plans.

Stakeholder Impact

• The stock sales could have a minor negative impact on shareholder sentiment, although the impact is likely to be minimal given the reasons for the sales.
• The sales do not directly impact employees, customers, suppliers, or creditors.

Key Dates