Form 4: Solitron Devices COO Matson Buys 5,000 Shares

Solitron Devices' President and COO, Mark Matson, acquired 5,000 shares of common stock at $21.22 per share under a 10b5-1 plan.

Summary

• Mark Matson, President and COO, Director, and 10% Owner of Solitron Devices Inc. (SODI), acquired 5,000 shares of common stock.
• The transaction occurred on March 11, 2026, under a 10b5-1(c) plan adopted on August 13, 2025.
• The purchase price was $21.22 per share, which was the weighted average share price for Solitron's fourth quarter fiscal year 2026.
• Following this acquisition, Mr. Matson directly beneficially owns 238,573 shares of Solitron Devices common stock.
• The share price on the exercise date was $24.50, indicating the purchase was made at a discount to the market price on that day.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive signal, as a key executive and significant owner is increasing their stake, demonstrating confidence in the company's value and future prospects, especially given the purchase price was below the market price on the transaction date.

Positives

• Insider buying by a key executive (President and COO, Director, and 10% Owner) signals confidence in the company's future prospects.
• The purchase was made at $21.22 per share, which was below the market price of $24.50 on the exercise date, indicating a favorable acquisition price for the insider.
• The transaction was executed under a pre-arranged 10b5-1 plan, suggesting a systematic approach to increasing ownership.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance beyond the execution of a pre-arranged stock purchase plan.

Management Comments

• Per the terms of Mr. Matson's Employment Agreement, Effective Date August 13, 2025, Mr. Matson has the right to purchase up to 5,000 shares of Company common stock each quarter at a weighted average share price for the quarter for a period of thirty days after the end of the quarter.

Industry Context

StockSavvy.ai notes that insider buying, especially by a high-ranking executive and significant owner like a President and COO, often signals strong internal confidence in the company's valuation and future performance. This type of transaction is generally viewed positively by the market, particularly when executed under a 10b5-1 plan, which demonstrates a pre-planned investment strategy rather than a reaction to immediate market conditions.

Comparison to Industry Standards

• Insider buying activity is a common indicator tracked by investors across all industries. While specific comparable companies are not mentioned in the filing, the act of an executive increasing their stake is generally seen as a positive signal, aligning management's interests with shareholders.
• The purchase at a weighted average price below the market price on the exercise date is a favorable outcome for the insider, reflecting a benefit often structured in executive compensation plans.

Related Party Transactions

• The transaction is a purchase of company common stock by a key executive (Mark Matson, President and COO, Director, and 10% Owner) under the terms of his employment agreement, which can be considered a related party transaction.

Stakeholder Impact

• Shareholders: May view this insider purchase as a positive indicator of management's belief in the company's future, potentially boosting investor confidence.
• Employees: No direct impact mentioned, but a confident leadership team can positively influence morale.
• Management: The transaction aligns Mr. Matson's financial interests more closely with the long-term performance of the company.

Next Steps

• Mr. Matson has the right to purchase up to 5,000 shares of common stock each quarter under the terms of his employment agreement.

Key Dates

Recommendation

The acquisition of 5,000 shares by a high-ranking executive who is also a Director and 10% owner, particularly at a price below the market value on the transaction date, is a strong signal of insider confidence. This type of insider buying, especially when pre-planned via a 10b5-1 plan, suggests a belief in the company's intrinsic value and future growth potential, making it an attractive opportunity for investors.

Keywords

Solitron Devices, SODI, Mark Matson, Insider Buy, Form 4, Stock Purchase, 10b5-1 Plan, Executive Ownership, Common Stock