ACADIA PHARMACEUTICALS (NASDAQ: ACAD) officer sells shares for RSU tax withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
ACADIA PHARMACEUTICALS principal accounting officer James Kihara exercised and vested equity awards and sold shares to cover taxes. On May 1, 2026, he exercised 2,596 restricted stock units, receiving the same number of common shares at $0.00 per share. On May 4, 2026, 1,332 common shares were sold at a weighted average price of $21.79, with footnotes stating these mandatory sales were solely to cover withholding taxes and tax-related items in connection with the RSU vesting and intended to meet Rule 10b5-1(c) requirements. After these transactions, he directly held 29,129 common shares.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 1,332 shares ($29,024)
Net Sell
3 txns
Insider
Kihara James
Role
PRINCIPAL ACCOUNTING OFFICER
Sold
1,332 shs ($29K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 1,332 | $21.79 | $29K |
| Exercise | Restricted Stock Units | 2,596 | $0.00 | -- |
| Exercise | Common Stock | 2,596 | $0.00 | -- |
Holdings After Transaction:
Common Stock — 29,129 shares (Direct, null);
Restricted Stock Units — 2,596 shares (Direct, null)
Footnotes (1)
- Each restricted stock unit represents a contingent right to receive one share of the Issuer's common stock. The mandatory sales reported in this Form 4 were made to cover withholding taxes and tax related items imposed by the Issuer in connection with the vesting of restricted stock units, and it is intended to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act and be interpreted to meet the requirements of Rule 10b5-1(c). The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $21.79 to $21.815, inclusive. The reporting person undertakes to provide to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth above. The restricted stock units vest in four equal annual installments beginning May 1, 2024.
Key Figures
Shares sold for taxes: 1,332 shares at $21.79
RSUs converted: 2,596 units at $0.00
Shares held after transactions: 29,129 shares
+1 more
4 metrics
Shares sold for taxes
1,332 shares at $21.79
Mandatory tax-related sale on May 4, 2026
RSUs converted
2,596 units at $0.00
Restricted stock units converting to common shares on May 1, 2026
Shares held after transactions
29,129 shares
Direct common stock holdings following reported transactions
Price range of sales
$21.79–$21.815
Weighted-average sale price range for 1,332 shares sold
Key Terms
Restricted Stock Units, withholding taxes, Rule 10b5-1(c), weighted average price, +1 more
5 terms
Restricted Stock Units financial
"The restricted stock units vest in four equal annual installments beginning May 1, 2024."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
withholding taxes financial
"mandatory sales reported in this Form 4 were made to cover withholding taxes and tax related items"
Withholding taxes are amounts a payer or government takes out of payments — such as wages, interest, or dividends — before the recipient gets the money, functioning like a cashier keeping part of a bill to pay taxes on your behalf. For investors this matters because it reduces the cash they actually receive, affects net returns and yield calculations, and may require additional paperwork or treaty claims to recover or offset the withheld amount against final tax bills.
Rule 10b5-1(c) regulatory
"it is intended to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act"
Rule 10b5-1(c) is an SEC guideline that lets company insiders set up a written, pre-planned schedule to buy or sell their company stock when they are not in possession of material, nonpublic information. For investors, it matters because such plans can reduce the appearance of insider trading by separating decisions from inside knowledge—like putting your trades on autopilot—while also requiring scrutiny since pre-planned trades can still affect market confidence and share value.
weighted average price financial
"The price reported in Column 4 is a weighted average price."
Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.
derivative security financial
"transaction_code_description: Exercise or conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
FAQ
What did ACAD (ACADIA PHARMACEUTICALS) officer James Kihara report in this Form 4?
He reported an RSU vesting and related share sale for taxes. On May 1, 2026, 2,596 restricted stock units converted into common shares, followed by a 1,332-share sale on May 4, 2026, to cover tax obligations tied to the vesting.
What happened to James Kihara’s restricted stock units in this ACAD Form 4?
On May 1, 2026, 2,596 restricted stock units converted into an equal number of ACAD common shares. A footnote states each unit represented a contingent right to receive one share, vesting in four equal annual installments starting May 1, 2024.
Does the ACAD Form 4 mention a Rule 10b5-1 trading plan for these transactions?
Yes, the filing states the mandatory sales were intended to comply with Rule 10b5-1(c)(1)(i)(B). It notes the interpretation is meant to satisfy Rule 10b5-1(c) requirements, indicating a pre-arranged, rules-based framework rather than discretionary trading decisions.