DGX Form 4: Officer Plewman exercises options and executes sale under 10b5-1
Rhea-AI Filing Summary
Quest Diagnostics (DGX) officer Patrick Plewman reported option exercise and a contemporaneous sale on 08/19/2025. He exercised 4,532 non-qualified stock options at an exercise price of $112.17 per share, resulting in ownership of 4,532 underlying shares. Immediately thereafter he sold 4,532 shares at $183.00 per share. After these transactions his beneficial ownership in the issuer is reported as 17,244 shares. The filings state the exercise and sale were executed pursuant to a Rule 10b5-1 sales plan and that the options vested in three annual installments between 2021 and 2023.
Positive
- Transaction executed under a Rule 10b5-1 plan, indicating pre-planned, compliant insider trading procedures
- Options were fully vested (vesting completed across 2021-2023), so exercise did not involve unvested awards
Negative
- Officer sold 4,532 shares, reducing direct holdings and potentially signaling insider liquidity
- Filing discloses a sale at $183.00, which may be perceived as material by some investors even though it was pre-planned
Insights
TL;DR: Officer exercised options and sold all resulting shares under a 10b5-1 plan; the trade appears routine and pre-planned.
The transaction shows a common officer liquidity event: exercising vested options with an immediate sale under a Rule 10b5-1 plan. The exercise price was $112.17 and the sale price $183.00, implying realization of intrinsic value per share. The number of shares involved (4,532) is disclosed and post-transaction beneficial ownership is 17,244. From a market-impact perspective, the filing contains no additional material disclosures about company performance or corporate actions.
TL;DR: Use of a Rule 10b5-1 plan indicates compliance with insider trading policies; transaction timing appears governed by the plan.
The filing explicitly states the exercise and sale were effected pursuant to a Rule 10b5-1 sales plan, which provides an affirmative defense to insider trading claims when properly adopted. The options vested in scheduled installments (02/18/2021, 02/18/2022, 02/18/2023), confirming the shares were eligible for exercise. No departures, grants, or other governance events are reported here.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Non-Qualifed Stock Option (right to buy) | 4,532 | $112.17 | $508K |
| Exercise | Common Stock | 4,532 | $112.17 | $508K |
| Sale | Common Stock | 4,532 | $183.00 | $829K |
Footnotes (1)
- This exercise and sale reported were effected pursuant to a Rule 10b5-1 sales plan adopted by the reporting person. The options vested in three annual installments beginning with the first on February 18, 2021, the second on February 18, 2022 and the final on February 18, 2023.
