Couling John D 4

What Happened
John D. Couling, Senior Vice President, Entertainment at Dolby Laboratories (DLB), exercised 7,667 stock options on July 1, 2026 at an exercise price of $45.50 per share (total cost $348,849) and sold the same 7,667 shares in the open market the same day at a weighted-average price of $53.20 per share (total proceeds $407,894). The exercise and immediate sale resulted in a gross difference of about $59,045 before taxes and fees. The Form 4 records the option exercise (transaction code M) and the open-market sale (transaction code S).

Key Details

• Transaction date: 2026-07-01. Form filed: 2026-07-06 (filed late relative to the typical 2-business-day deadline).
• Exercise: 7,667 shares at $45.50 — $348,849 total (code M). The exercised option was fully vested.
• Sale: 7,667 shares at weighted-average $53.20 — $407,894 total (code S). Reported sale prices ranged $52.96–$53.50; the filing shows a weighted average.
• Shares held after transaction: not fully itemized in the form; filing states it includes 55,114 shares underlying restricted stock units that remain subject to forfeiture until vesting (footnote).
• Footnotes: (F2) sale executed in multiple trades (range and weighted average disclosed); (F3) the option exercised was part of a larger 46,000-share grant and was fully vested.

Context
This was a cashless-style transaction: options were exercised and the resulting shares were sold the same day — common for executives to cover exercise costs and taxes. Such routine exercise-and-sell activity is different from a buy (which can be interpreted as a more direct bullish signal). The filing does not indicate a 10% owner or a gift; it reflects an executive-level option exercise and immediate sale.