Patel Paresh 4

What Happened

• Paresh Patel, CEO of HCI Group, exercised options to acquire 20,000 shares at $40.00 per share (total cost $800,000) on February 23, 2026. The same day the filing records a disposition of 20,000 derivative shares at $40.00 per share (total $800,000).
• This filing reports an option exercise (code M) paired with a derivative disposition; it is not an open-market purchase. The filing itself does not state whether the disposed shares were the same shares immediately sold, used to cover the exercise cost, or otherwise transferred.

Key Details

• Transaction date: February 23, 2026; Form 4 filed February 24, 2026 (timely).
• Exercise/acquisition: 20,000 shares @ $40.00 = $800,000 (code M).
• Disposition: 20,000 derivative shares @ $40.00 = $800,000 (reported as a derivative disposal).
• Shares owned after transaction: not specified in the provided excerpt of the filing.
• Relevant footnotes: F1 (shares held jointly with spouse); F3–F5 note options were granted under HCI's 2012 Omnibus Incentive Plan and include $40.00 exercise-price grants (Jan 7, 2017 and Feb 8, 2018) with vesting/expiration details.
• Filing does not indicate a 10b5-1 plan, tax withholding, or that the transaction was part of a pre-arranged sale plan.

Context

• Code M denotes an exercise or conversion of a derivative security (options). The paired acquisition and disposition at the same price often reflects an exercise with a simultaneous sale or transfer, but the Form 4 here doesn’t specify the mechanics.
• Exercises are not the same signal as an open-market buy by an insider — they show option holders converting contracts into shares (sometimes followed by sale). Retail investors should note purchases are usually clearer bullish signals; an exercise plus immediate disposition can be routine or for liquidity/tax purposes and does not necessarily indicate a change in insider sentiment.