Form 4: Warby Parker Co-CEO David Gilboa Sells Shares Under 10b5-1 Plan

Warby Parker's Co-Chief Executive Officer, David Gilboa, executed multiple sales of Class A Common Stock under a pre-arranged 10b5-1 trading plan.

Summary

• David Gilboa, Co-Chief Executive Officer of Warby Parker, sold shares of Class A Common Stock on December 10th and 11th, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on November 22, 2023.
• On December 10th, 304,947 shares were sold at an average price of $23.50.
• On December 11th, 54,000 shares were sold at an average price of $23.84.
• The sales were conducted in multiple transactions with prices ranging from $23.28 to $23.66 on December 10th and $23.51 to $24.17 on December 11th.
• Gilboa also acquired the same number of Class A shares on the same days, likely through the exercise of options or other equity awards.
• Gilboa also holds Class B Common Stock, which is convertible to Class A Common Stock on a one-to-one basis under certain conditions.

Sentiment

Score: 5

Explanation: The document details routine share sales by an executive under a pre-arranged plan. It is neither particularly positive nor negative, hence a neutral score.

Risks

• The sales by a key executive could be perceived negatively by the market, potentially impacting the stock price.
• The conversion terms of Class B shares could lead to future dilution of Class A shares.

Industry Context

Executive share sales are a common occurrence, especially under pre-arranged trading plans like 10b5-1. These plans allow insiders to sell shares without being accused of trading on non-public information. The market will likely interpret this as a routine transaction unless there are other significant factors at play.

Comparison to Industry Standards

• Executive share sales are common across the industry, with many executives using 10b5-1 plans to manage their personal finances.
• Comparable companies like Zenni Optical and GlassesUSA also see similar executive transactions, though the specific details and timing vary.
• The volume of shares sold by Gilboa is not unusual for a co-CEO of a publicly traded company, and the prices are within the expected range for the stock.

Stakeholder Impact

• Shareholders may react to the news of executive share sales, though the pre-planned nature of the transactions should mitigate any negative impact.
• Employees may be interested in the executive's actions, but the sales are unlikely to have a direct impact on their day-to-day work.

Key Dates

Keywords

Warby Parker, David Gilboa, Share Sales, Class A Common Stock, Class B Common Stock, 10b5-1 Trading Plan, Executive Transactions