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

Peter Rahmer, Chief Corporate Development Officer of Relay Therapeutics, sold shares 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 common stock on June 3rd, 4th, and 5th, 2024.
• On June 3rd, 19,864 shares were sold at $6.47 per share to cover income tax withholding obligations upon the vesting of 80,909 restricted stock units.
• On June 4th, 40,595 shares were sold at a weighted average price of $6.64 per share, with prices ranging from $6.56 to $6.80.
• On June 5th, 20,450 shares were sold at a weighted average price of $7.06 per share, with prices ranging from $6.97 to $7.18.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on February 22, 2024.
• Following these transactions, Rahmer beneficially owns 432,425 shares of common stock, including 384,434 shares underlying RSUs.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of stock sales by an executive, which is neither particularly positive nor negative. The sales are partly to cover tax obligations and partly under a pre-arranged trading plan, suggesting no specific concern about the company's prospects.

Industry Context

Insider sales are a common occurrence, especially when tied to tax obligations from vesting equity or pre-planned trading programs like Rule 10b5-1 plans. These plans allow insiders to sell shares at predetermined times and prices, avoiding accusations of trading on non-public information.

Comparison to Industry Standards

• Similar sales by executives are common in the pharmaceutical and biotech industries, particularly after vesting events.
• Companies like Amgen, Gilead, and Biogen often see similar Form 4 filings related to executive stock sales.
• The use of 10b5-1 trading plans is a standard practice among public company executives to manage their stock holdings and avoid potential insider trading concerns.

Stakeholder Impact

• The stock sales could have a minor negative impact on shareholders if they perceive it as a lack of confidence by the executive, although the pre-planned nature of the sales mitigates this concern.
• Employees may be indirectly affected by the stock price fluctuations resulting from these transactions.

Key Dates