BEAM CEO exercised options at $0.67 and sold 50,000 shares
Rhea-AI Filing Summary
John M. Evans, Beam Therapeutics Inc. CEO and director, reported option exercises and sales in early October 2025 under a Rule 10b5-1 plan. On 10/01/2025 and 10/02/2025 he exercised two stock option tranches at a $0.67 strike for 25,000 shares each and sold corresponding blocks of 25,000 shares on each date. The sales were executed as multiple transactions at weighted average prices of approximately $24.5062 (range $24.14–$24.92) and $24.6267 (range $24.22–$25.05). Following the reported acquisitions, Mr. Evans beneficially owned 1,011,667 shares directly and 103,000 shares indirectly via the John M. Evans, III 2018 Irrevocable Trust. The Form 4 notes the option grants dated 05/08/2018 with portions still exercisable and expiring on 05/08/2028, and that the trades were made pursuant to a trading plan adopted on 05/16/2025.
Positive
- Transactions executed under a Rule 10b5-1 plan adopted on 05/16/2025, indicating pre-planned trading
- Options exercised at a low strike of $0.67, converting long-term compensation into shares
- Beneficial ownership disclosed explicitly: 1,011,667 shares direct and 103,000 indirect
Negative
- Insider sold a total of 50,000 shares (two blocks of 25,000), which is a material insider disposition
- Sales executed across price ranges ($24.14–$25.05), requiring weighted-average reporting rather than single price visibility
Insights
TL;DR: Insider exercised low-strike options and sold shares under a documented Rule 10b5-1 plan.
The Form 4 shows the CEO, John M. Evans, using a 10b5-1 trading plan adopted 05/16/2025 to effect exercises and sales on 10/01/2025–10/02/2025. Using an established plan can reduce concerns about timing and selective disclosure because trades follow a pre-set program rather than opportunistic timing.
The filing discloses total direct beneficial ownership of 1,011,667 shares and 103,000 shares held indirectly via a trust, which are concrete share counts investors can use to track insider stake.
TL;DR: CEO exercised options at a $0.67 strike and sold shares at ~$24.5, realizing material gross proceeds per option.
The report shows two option exercises (each for 25,000 shares) with an exercise price of $0.67 and corresponding sales of those shares at weighted average prices of $24.5062 and $24.6267. These transactions convert equity compensation from underwater strike to liquid shares and realize the intrinsic value equal to the sale price minus the $0.67 strike.
The options referenced were granted 05/08/2018 and retain exercisable portions expiring on 05/08/2028, which is relevant for potential future option exercises and dilution considerations.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock Option (Right to Buy) | 25,000 | $0.00 | -- |
| Exercise | Common Stock | 25,000 | $0.67 | $17K |
| Sale | Common Stock | 25,000 | $24.6267 | $616K |
| Exercise | Stock Option (Right to Buy) | 25,000 | $0.00 | -- |
| Exercise | Common Stock | 25,000 | $0.67 | $17K |
| Sale | Common Stock | 25,000 | $24.5062 | $613K |
| holding | Common Stock | -- | -- | -- |
Footnotes (1)
- These transactions were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on May 16, 2025. Includes 418 shares acquired by the Reporting Person under the Beam Therapeutics Inc. ("BEAM") Amended and Restated 2019 Employee Stock Purchase Plan on September 30, 2025. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions ranging from $24.14 to $24.92, inclusive. The Reporting Person undertakes to provide to BEAM, any security holder of BEAM 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. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions ranging from $24.22 to $25.05, inclusive. The Reporting Person undertakes to provide to BEAM, any security holder of BEAM 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. On May 8, 2018, the Reporting Person was granted an option to purchase shares of common stock, which vested as to 99,396 shares upon the achievement of a closing hurdle following BEAM's initial public offering (which closing price hurdle was achieved) (the "Price Condition"). The portion of the award subject to the Price Condition vested in three equal installments on December 21, June 30, 2022, and December 31, 2022.
