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|4Feb 4, 5:18 PM ET

Chang David D 4

Research Summary

AI-generated summary

Updated

Allogene (ALLO) CEO David Chang Receives RSUs, Sells Shares

What Happened

  • David D. Chang, President, CEO and Director of Allogene Therapeutics (ALLO), had two primary transactions reported for 2026-02-02: a mandatory sell-to-cover of 95,269 shares (open-market sale) and awards totaling 1,780,517 restricted stock units (RSUs) reported as derivative acquisitions.
  • The sale realized a weighted average price of $1.80 per share for proceeds of $171,484 (sales occurred across prices ranging $1.71–$1.87). The RSU awards are reported at $0.00 purchase price (grants), so no cash purchase was made.

Key Details

  • Transaction date: February 2, 2026; Form 4 filed February 4, 2026 (timely filing).
  • Sale: 95,269 shares disposed, weighted avg price $1.80; total reported proceeds ~$171,484. Footnote says the sale was a mandatory "sell-to-cover" to satisfy tax withholding under the company’s equity plan (not a discretionary sale).
  • Awards: 1,387,931 RSUs + 392,586 RSUs = 1,780,517 RSUs granted (reported as derivative acquisitions). Each RSU represents a contingent right to one share.
  • RSU vesting: RSUs vest in four equal annual installments beginning February 2, 2026, subject to continued service (per footnote).
  • Other filing notes: weighted-average sale price range disclosed; filing references other holdings in trusts (RTC 2019 Trust, JEC 2019 Trust, Chang 2006 Family Trust) and 4,562 ESPP shares acquired Sept 15, 2025. A vesting schedule for certain options (25% on Feb 2, 2027, then monthly over 36 months) is also noted.
  • Shares owned after the reported transactions were not specified in the provided summary.

Context

  • The sale was a tax-withholding "sell-to-cover" tied to the RSU vesting and thus is routine and not necessarily a signal of sentiment.
  • The RSU grants are non-cash awards that vest over time; they represent potential future stock delivery if vesting conditions are met.
  • For retail investors: awards (RSUs) increase possible future insider exposure; sales tied to tax withholding are common and should be interpreted differently than voluntary open-market sales.