Form 4: SkyWater Director Sells 60,767 Shares Under 10b5-1 Plan

SkyWater Technology Director and 10% owner Loren A. Unterseher sold 60,767 shares of common stock for approximately $12.08 per share as part of a pre-arranged trading plan.

Summary

• Loren A. Unterseher, a Director and 10% owner of SkyWater Technology, Inc. (SKYT), sold 60,767 shares of common stock.
• The transaction occurred on August 29, 2025, at a weighted average price of $12.0811 per share, with sale prices ranging from $12.00 to $12.26.
• The sale was executed pursuant to a Rule 10b5-1(c) trading plan, indicating it was pre-scheduled.
• Following the transaction, Mr. Unterseher, directly and indirectly through various entities and trusts, retains significant beneficial ownership.
• Direct holdings include 7,600,245 shares by CMI Oxbow Partners, LLC, 3 shares by Oxbow Industries, LLC, and 23,713 shares directly by Mr. Unterseher.
• Indirect holdings encompass shares held by 2023 and 2024 grantor retained annuity trusts, trusts for the benefit of his son and daughter, by his spouse, and by a family irrevocable trust and a revocable trust.

Sentiment

Score: 4

Explanation: The sale by a director and 10% owner is generally a negative signal, but the execution under a 10b5-1 plan mitigates the immediate concern of opportunistic selling, making the sentiment moderately negative rather than strongly negative.

Positives

• The sale was conducted under a Rule 10b5-1(c) trading plan, indicating it was pre-scheduled and not necessarily based on new, non-public information.
• Mr. Unterseher, through various direct and indirect holdings, retains a substantial beneficial ownership in SkyWater Technology, Inc., demonstrating continued alignment with shareholder interests.

Negatives

• An insider sale, even under a 10b5-1 plan, can be perceived negatively by the market as it reduces the insider's direct equity stake.
• The sale of 60,767 shares represents a reduction in the direct holdings of a key director and 10% owner.

Risks

• Market perception of insider selling could lead to negative sentiment or downward pressure on the stock price.
• While executed under a 10b5-1 plan, the timing of establishing such a plan could still be a point of scrutiny for investors.

Industry Context

This Form 4 filing is a routine disclosure of an insider stock transaction. In the semiconductor industry, insider trading activity is closely watched for signals regarding company performance and future prospects, though 10b5-1 plans often mitigate immediate concerns about opportunistic selling.

Related Party Transactions

• Loren A. Unterseher's beneficial ownership includes shares held indirectly through CMI Oxbow Partners, LLC, Oxbow Industries, LLC, and various family trusts, indicating a complex web of related party holdings.

Stakeholder Impact

• Shareholders may interpret the insider sale as a negative signal, potentially leading to short-term price volatility. However, the 10b5-1 plan context might reassure some.
• Employees, customers, suppliers, and creditors are unlikely to be directly impacted by this specific transaction.

Key Dates

Recommendation

While the insider sale by a director and 10% owner could be perceived negatively, the transaction was conducted under a pre-arranged 10b5-1 plan, which suggests it was not based on new, adverse material information. The insider still retains a substantial beneficial ownership. Without additional financial or strategic updates from the company, a 'hold' recommendation is appropriate, advising investors to monitor future company performance and insider activity.

Keywords

SkyWater Technology, SKYT, Insider Sale, Form 4, Loren A. Unterseher, Director, 10% Owner, Stock Transaction, 10b5-1 Plan, Semiconductor, Foundry