Form 4: Revolution Medicines CEO Sells Shares to Cover Tax Obligations

Mark A. Goldsmith, CEO of Revolution Medicines, sold 11,950 shares of common stock on June 17, 2024, to satisfy tax withholding obligations related to vesting restricted stock units.

Summary

• On June 17, 2024, Mark A. Goldsmith, the President and CEO of Revolution Medicines, sold 11,950 shares of the company's common stock.
• The sale was executed at a weighted average price of $37.3866 per share, with individual trades ranging from $37.3863 to $37.3870.
• This transaction was made pursuant to a Rule 10b5-1 trading plan adopted on May 31, 2023, to cover tax obligations arising from the vesting of restricted stock units (RSUs).
• Following the transaction, Goldsmith directly owns 311,885 shares of common stock.
• Goldsmith also indirectly owns shares through several trusts: 30,424 shares through the Jonathan Goldsmith Revocable Trust, 30,424 shares through the Rebecca Eve Goldsmith Trust, and 465,604 shares through the Mark A. Goldsmith and Anne E. Midler 2002 Revocable Living Trust.
• The report also notes that Goldsmith acquired 1,513 shares under the Issuer's Employee Stock Purchase Plan on May 31, 2024.
• The filing was signed on June 20, 2024, by Jack Anders, as attorney-in-fact for Mark A. Goldsmith.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine sale for tax purposes under a pre-arranged plan, with no indication of negative sentiment towards the company's prospects.

Positives

• The sale was conducted under a pre-arranged 10b5-1 trading plan, indicating it was planned well in advance and not based on any recent inside information.

Industry Context

Insider sales are a common occurrence, especially when tied to pre-arranged trading plans like Rule 10b5-1. Investors often monitor these transactions to gauge executive sentiment, but sales for tax purposes are generally viewed as routine.

Comparison to Industry Standards

• Executive stock sales for tax obligations are a common practice across the pharmaceutical and biotechnology industries.
• Many companies, such as Amgen, Gilead Sciences, and Regeneron, have executives who utilize 10b5-1 plans for similar purposes.
• The size of the sale (11,950 shares) is relatively small compared to the total shares held by Goldsmith, suggesting it's a routine transaction rather than a significant change in his investment outlook.

Stakeholder Impact

• The sale is unlikely to have a significant impact on shareholders, as it is a routine transaction for tax purposes.
• Employees may view the transaction as normal, given the use of a 10b5-1 plan.

Key Dates