Merengo Claudio 4

What Happened
Claudio Merengo, President of Graco’s Global Powder Division, exercised employee stock options and immediately sold the resulting 14,410 shares on January 30, 2026. He paid $30.35 per share to exercise (total cost $437,296) and sold the shares in the open market for a weighted average price of $87.03, generating $1,254,085 in gross proceeds. The filing also reports the cancellation/disposition of the derivative (the option) tied to those shares.

Key Details

• Transaction date: January 30, 2026.
• Exercise: 14,410 shares acquired at $30.35 each — total exercise cost $437,296. (Code M = option exercise)
• Sale: 14,410 shares sold in the open market at a weighted average price of $87.03 — total proceeds $1,254,085. (Code S = sale)
• Sale price range: $87.00–$87.19; reporting person can provide breakdown on request (footnote F2).
• Option info: Employee stock option granted under the Graco Inc. 2015 Stock Incentive Plan; option was fully exercisable (footnote F3).
• Additional note: Footnote F1 indicates some reported shares elsewhere may include shares from the company’s DRIP (exempt under Rule 16a‑11).
• Shares owned after transaction: not specified in the provided summary.
• Filing timeliness: Reported Feb 2, 2026 for a Jan 30 transaction — appears timely (filed within required business days).

Context

• This was effectively a cashless exercise: the insider exercised options (paid exercise price) and immediately sold the shares in the open market. The derivative disposition at $0 reflects cancellation/conversion of the option upon exercise.
• Such sell-after-exercise transactions are common for covering exercise costs, taxes, or diversifying holdings and are not, by themselves, a directional signal about company prospects.