Form 4: Turning Point Brands CEO Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Graham Purdy, CEO of Turning Point Brands, sold 252 shares of common stock on January 2, 2025, to cover tax obligations related to vested restricted stock units.
Summary
- On January 2, 2025, Graham Purdy, the President and CEO of Turning Point Brands, Inc., disposed of 252 shares of common stock to cover tax obligations.
- The shares were sold at a price of $60.65 per share.
- Following the transaction, Purdy directly owns 210,402 shares, which includes 42,072 Restricted Stock Units (RSUs) and 168,330 shares of common stock.
- Purdy also holds options to purchase shares of common stock at various exercise prices and expiration dates, granted under the company's 2015 and 2021 Equity Incentive Plans.
Sentiment
Score: 5
Explanation: The document is a routine regulatory filing related to insider trading. The transaction appears to be for tax purposes, so it doesn't necessarily indicate a positive or negative sentiment towards the company's future prospects.
Industry Context
Form 4 filings are standard disclosures required by the SEC when company insiders, like the CEO, trade their company's stock. These filings provide transparency into insider transactions and can be used by investors to gauge management's sentiment and confidence in the company.
Comparison to Industry Standards
- Insider selling to cover tax obligations upon vesting of restricted stock units is a common practice among executives in publicly traded companies.
- The amount of shares sold is relatively small compared to the total holdings of the CEO, suggesting it is primarily for tax purposes rather than a significant change in investment strategy.
- Comparable companies in the consumer goods sector also see similar Form 4 filings related to stock option exercises and RSU vesting.
Stakeholder Impact
- The transaction has a minimal impact on shareholders as it is a small percentage of the CEO's total holdings.
- Employees are not directly impacted by this transaction.
Key Dates
| Date | Description |
|---|---|
| 01/01/2018 | 34% of options granted on 05/17/2027 vest and become exercisable. |
| 01/01/2019 | 33% of options granted on 05/17/2027 vest and become exercisable; 34% of options granted on 03/07/2028 vest and become exercisable. |
| 01/01/2020 | 33% of options granted on 05/17/2027 vest and become exercisable; 33% of options granted on 03/07/2028 vest and become exercisable; 34% of options granted on 03/20/2029 vest and become exercisable. |
| 01/01/2021 | 33% of options granted on 03/07/2028 vest and become exercisable; 33% of options granted on 03/20/2029 vest and become exercisable; 34% of options granted on 03/18/2030 vest and become exercisable. |
| 01/01/2022 | 33% of options granted on 03/20/2029 vest and become exercisable; 33% of options granted on 03/18/2030 vest and become exercisable; 34% of options granted on 02/18/2031 vest and become exercisable. |
| 01/01/2023 | 33% of options granted on 03/18/2030 vest and become exercisable; 33% of options granted on 02/18/2031 vest and become exercisable; 34% of options granted on 03/14/2032 vest and become exercisable. |
| 01/01/2024 | 33% of options granted on 02/18/2031 vest and become exercisable; 33% of options granted on 03/14/2032 vest and become exercisable. |
| 01/02/2025 | CEO Graham Purdy sold 252 shares at $60.65 to cover tax obligations; 33% of options granted on 03/14/2032 vest and become exercisable. |
| 05/17/2027 | Expiration date for options granted on 05/17/2017 with an exercise price of $15.41. |
| 03/07/2028 | Expiration date for options granted on 03/07/2018 with an exercise price of $21.21. |
| 03/20/2029 | Expiration date for options granted on 03/20/2019 with an exercise price of $47.58. |
| 03/18/2030 | Expiration date for options granted on 03/18/2020 with an exercise price of $14.85. |
| 02/18/2031 | Expiration date for options granted on 02/18/2021 with an exercise price of $51.75. |
| 03/14/2032 | Expiration date for options granted on 03/14/2022 with an exercise price of $30.46. |
| 01/06/2025 | Date of signature on the Form 4 filing. |
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