Pegels Kevin Carl 4

What Happened

• Kevin Carl Pegels, Illumina’s Chief of Global Operations, had 2,283 shares issued on Feb 12, 2026 upon conversion/exercise of a derivative (performance share units). No cash was paid for those shares ($0.00 acquisition price).
• To cover tax withholding, 874 of those shares were disposed at $114.44 each, generating proceeds of $100,021 (reported). Net shares retained from the conversion = 2,283 − 874 = 1,409 shares.
• This is not a market-driven buy or sell for investment purposes but a routine issuance/settlement of compensation tied to performance.

Key Details

• Transaction date: 2026-02-12; Form 4 filed: 2026-02-17 (filed 5 calendar days after the transaction; Form 4s are generally due within 2 business days, so this appears later than typical).
• Entries reported:
  • Conversion/exercise (code M): 2,283 shares @ $0.00 (acquired)
  • Tax withholding (code F): 874 shares @ $114.44 (disposed) = $100,021
• Shares owned after the transaction: not specified in the information provided in this summary.
• Footnote: The shares represent stock awarded after Illumina achieved at least 74% of the applicable performance criteria under a PSU grant dated March 1, 2023.

Context

• This was effectively a net settlement of performance share units: shares were issued on vesting/conversion and a portion was withheld/sold to satisfy tax obligations (a common compensation practice), not a discretionary sale signaling a change in insider sentiment.
• For retail investors, purchases (insider cash buys) are generally more informative than routine withholding events; consider this as a compensation-related issuance rather than a market-timed trade.