O'Day Daniel Patrick 4

What Happened
Daniel P. O'Day, Chairman & CEO of Gilead Sciences (GILD), exercised 115,640 stock options and immediately sold the resulting 115,640 shares. The options were exercised at $66.01 per share for a total exercise cost of $7,633,396, and the shares were sold in an open-market transaction at $150.00 per share for gross proceeds of $17,346,000. The filing shows the derivative conversion/settlement associated with the exercise.

Key Details

• Transaction date: February 5, 2026; Form 4 filed February 6, 2026 (appears timely).
• Exercise: 115,640 options exercised at $66.01 → $7,633,396 total (transaction code M).
• Sale: 115,640 shares sold at $150.00 → $17,346,000 total (transaction code S).
• Derivative disposition entry (115,640 shares at $0.00) reflects conversion/settlement of the exercised derivative.
• Reported under a Rule 10b5-1 trading plan adopted February 28, 2025 (footnote F1).
• Vesting note: the options follow a four-year vesting schedule (25% at 1 year, then 6.25% quarterly) per the filing (footnote F2).
• Shares owned after the transaction: not specified in the information provided.

Context
This is an exercise-plus-immediate-sale pattern (often called a cashless exercise): the insider converted options into shares and sold them the same day. The sale was executed under a pre-established 10b5-1 trading plan, which typically means the trades were pre-authorized and may not reflect contemporaneous changes in the insider’s views. As with most insider sales, this is informational rather than a direct buy signal; purchases are generally considered more indicative of insider confidence.