Form 4: Schrodinger Executive Kenneth Patrick Lorton Sells Shares to Cover Tax Obligations

Kenneth Patrick Lorton, EVP, CTO & COO, Software at Schrodinger, Inc., sold 985 shares of common stock on February 11, 2025, to cover withholding tax obligations.

Summary

• On February 11, 2025, Kenneth Patrick Lorton, EVP, CTO & COO, Software at Schrodinger, Inc., sold 985 shares of common stock.
• The sale was executed at a price of $24.43 per share.
• The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted on March 9, 2023, to cover withholding tax liabilities from vesting restricted stock units (RSUs).
• Following the transaction, Lorton directly owns 41,076 shares of Schrodinger, Inc., which includes 4,085 unvested RSUs.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (stock sale for tax obligations) by an executive, which is neither particularly positive nor negative.

Industry Context

Sales by insiders to cover tax obligations are a common occurrence, especially after vesting of restricted stock units. The use of a 10b5-1 plan indicates that the insider does not have any material non-public information at the time of the trade.

Stakeholder Impact

• The sale of shares by an executive could have a minor impact on shareholder sentiment, but is unlikely to have a significant impact given the context of tax obligations and the existence of a pre-arranged trading plan.

Key Dates