Avalo Therapeutics officer sells shares after option exercise
Avalo Therapeutics Chief Legal Officer Paul Varki reported a mix of option exercises and share sales in Avalo Therapeutics, Inc. common stock.
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Form Type
4
Rhea-AI Filing Summary
Avalo Therapeutics Chief Legal Officer Paul Varki reported a mix of option exercises and share sales in Avalo Therapeutics, Inc. common stock. On May 6, 2026, he exercised stock options to acquire a total of 75,063 shares of common stock at exercise prices of $8.04 and $13.43 per share.
On the same date, he sold 75,063 shares of common stock in open-market transactions at prices ranging from $18.50 to $22.88 per share. The filing states these transactions were carried out under a pre-arranged Rule 10b5-1 trading plan, indicating they were scheduled in advance as part of a trading program.
Insider Trade Summary 10b5-1
Exercise and Sale: 75,063 shares ($573K approx. pre-tax spread)
Exercise and Sale
9 txns
Insider
VARKI PAUL
Role
Chief Legal Officer
Sold
75,063 shs ($1.51M)
Approx. gross sale proceeds
$1.51M
Approx. exercise cost
$940K
Approx. pre-tax spread
$573K
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock Option (Right to Buy) | 62,500 | $0.00 | $0.00 |
| Exercise | Stock Option (Right to Buy) | 12,563 | $0.00 | $0.00 |
| Exercise | Common Stock | 62,500 | $13.43 | $839K |
| Exercise | Common Stock | 12,563 | $8.04 | $101K |
| Sale | Common Stock | 37,375 | $18.912 | $707K |
| Sale | Common Stock | 5,196 | $19.7812 | $103K |
| Sale | Common Stock | 22,839 | $21.2155 | $485K |
| Sale | Common Stock | 9,253 | $22.6985 | $210K |
| Sale | Common Stock | 400 | $23.71 | $9K |
Holdings After Transaction:
Stock Option (Right to Buy) — 174,937 contracts (Direct);
Common Stock — 3,634 shares (Direct)
Footnotes (7)
- F1. The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on November 12, 2025.
- F2. The reported securities were sold in multiple transactions at prices ranging from $18.50 to $19.495. 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 such range.
- F3. The reported securities were sold in multiple transactions at prices ranging from $19.50 to $19.99. 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 such range.
- F4. The reported securities were sold in multiple transactions at prices ranging from $20.75 to $21.69. 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 such range.
- F5. The reported securities were sold in multiple transactions at prices ranging from $22.15 to $22.88. 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 such range.
- F6. Twenty-five percent (25%) of the Option Shares vest on June 24, 2025 and the remainder of the Option Shares will vest in equal monthly installments on the first day of each month thereafter over the following three (3) years, provided that Optionee remains an employee of the Company on each such vesting date.
- F7. The stock option vests twenty-five percent (25%) on January 28, 2026 and the remainder will vest in equal monthly installments over the following three (3) years, subject to the Reporting Person's continued service on such vesting date.
Key Figures
Shares sold: 75,063 shares
Options exercised: 75,063 shares
Sale price range: $18.50–$22.88 per share
+3 more
6 metrics
Shares sold
75,063 shares
Total common shares sold in open-market transactions on May 6, 2026
Options exercised
75,063 shares
Total common shares acquired via option exercises on May 6, 2026
Sale price range
$18.50–$22.88 per share
Price ranges disclosed for multiple sale transactions
Option strike price
$8.04 per share
Exercise price for one stock option (Right to Buy) series
Option strike price
$13.43 per share
Exercise price for another stock option (Right to Buy) series
Rule 10b5-1 plan adoption date
November 12, 2025
Date the pre-arranged trading plan governing these transactions was adopted
Key Terms
Rule 10b5-1 trading plan, Stock Option (Right to Buy), derivative security, open-market sale, +1 more
5 terms
Rule 10b5-1 trading plan regulatory
"The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
Stock Option (Right to Buy) financial
"security_title": "Stock Option (Right to Buy)""
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.
open-market sale financial
"transaction_action": "open-market sale""
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
exercise or conversion financial
"transaction_action": "derivative exercise/conversion""
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did AVTX Chief Legal Officer Paul Varki report?
Paul Varki reported exercising stock options and selling common shares of Avalo Therapeutics, Inc. (AVTX). He exercised options for 75,063 shares and sold 75,063 shares in open-market trades, balancing option exercises with share disposals.
What stock options did the Avalo Therapeutics (AVTX) insider exercise?
Paul Varki exercised stock options covering 75,063 shares of Avalo Therapeutics common stock. The options had exercise prices of $8.04 and $13.43 per share, converting derivative securities into common shares as part of his compensation-related holdings.
Were the AVTX insider’s trades made under a Rule 10b5-1 plan?
Yes. The filing states the transactions were effected pursuant to a Rule 10b5-1 trading plan adopted on November 12, 2025. Such plans pre-schedule trades, indicating these sales and exercises followed a pre-arranged trading program instead of ad hoc decisions.
What does the Avalo Therapeutics (AVTX) Form 4 say about price ranges of the sales?
The Form 4 notes the reported shares were sold in multiple transactions. Sale prices ranged from $18.50 to $22.88 per share across several blocks, and the insider undertook to provide detailed trade-by-trade price information upon request.
Did the Avalo Therapeutics (AVTX) Form 4 involve derivative securities?
Yes. The filing lists Stock Option (Right to Buy) positions as derivative securities. These options were exercised to acquire common stock, with exercise prices of $8.04 and $13.43, and expiration dates in 2034 and 2035, respectively.
AI-generated analysis. How Rhea-AI works. Not financial advice.
