EGAN insider activity: 15k shares bought at $2.5 and sold at $10
Rhea-AI Filing Summary
Eric Smit, Chief Financial Officer of EGAIN Corp (EGAN), reported multiple stock and option transactions on 10/03/2025 under a Rule 10b5-1 plan adopted on 3/08/2024. The filing shows three non-derivative purchases totaling $37,500 (15,000 shares at $2.5 each) and three non-derivative sales totaling $150,000 (15,000 shares at $10 each). Parallel option-related entries record three grants/exercises for 5,000 employee stock options each (totaling 15,000 options) with an exercise price of $2.5, exercisable since 09/19/2017 and fully vested. The transactions changed reported common stock holdings in stages, with the last reported direct common share ownership at 129,187 shares and derivative holdings reflecting 43,000, 48,000, and 53,000 underlying shares in separate option lines.
Positive
- Transactions executed under a Rule 10b5-1 plan adopted on 03/08/2024, indicating preplanned trades
- Employee stock options are fully vested and exercisable since 09/19/2017
- Insider disclosed multiple transactions transparently on a timely Form 4 filing
Negative
- Reported sales of 15,000 shares at $10 reduced direct ownership to 129,187 shares
- Option activity increases potential dilution — filings reference 112,000 option shares tied to the grant
Insights
TL;DR: CFO executed matched buys and sells under a 10b5-1 plan; options are fully vested.
The trades were carried out pursuant to a Rule 10b5-1 trading plan adopted on 03/08/2024, which provides an affirmative defense for scheduled insider transactions. The filing records three purchases of 5,000 shares each at $2.5 and three sales of 5,000 shares each at $10, both on 10/03/2025.
Because the options referenced became exercisable on 09/19/2017 and are fully vested, the transactions likely reflect routine liquidity and tax planning rather than new compensation grants. Monitor reported direct share totals and future Form 4s for any changes to holdings or additional plan activity over the next 12 months.
TL;DR: Employee options exercised or reported with $2.5 strike; aggregates and vesting are disclosed.
The Form 4 lists employee stock option entries with a $2.5 exercise price and indicates a total option pool of 112,000 shares referenced by the remarks. The three reported option-line entries each cover 5,000 options that are exercisable and part of a larger fully vested grant.
These entries affect potential dilution metrics; investors may compare the 112,000 figure to outstanding shares in periodic filings to assess dilution impact within the next reporting cycle.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (right to buy) | 5,000 | $0.00 | -- |
| Exercise | Employee Stock Option (right to buy) | 5,000 | $0.00 | -- |
| Exercise | Employee Stock Option (right to buy) | 5,000 | $0.00 | -- |
| Exercise | Common Stock | 5,000 | $2.50 | $13K |
| Exercise | Common Stock | 5,000 | $2.50 | $13K |
| Exercise | Common Stock | 5,000 | $2.50 | $13K |
| Sale | Common Stock | 5,000 | $10.00 | $50K |
| Sale | Common Stock | 5,000 | $10.00 | $50K |
| Sale | Common Stock | 5,000 | $10.00 | $50K |
Footnotes (1)
- The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on March 8, 2024. The options, representing a right to purchase a total of 112,000 shares, became exercisable beginning on September 19, 2017, and is now fully vested.
