Newegg CLO exercises RSUs, sells 67 shares
Newegg Commerce, Inc. Chief Legal Officer Michael Chen exercised 105 restricted stock units (RSUs) into common stock on March 31, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
4
Rhea-AI Filing Summary
Newegg Commerce, Inc. Chief Legal Officer Michael Chen exercised 105 restricted stock units (RSUs) into common stock on March 31, 2026. The RSUs converted at $0.00 per share into 105 common shares.
On the same day, Chen sold 67 common shares at $41.06 per share in an open-market transaction effected under a Rule 10b5-1 trading plan, and 38 shares were withheld to cover tax obligations. After these transactions, he directly held 2,388 common shares and 719 RSUs. A prior award of 5,000 RSUs continues to vest monthly until fully vested on October 31, 2026.
Insider Trade Summary
Exercise and sale activity reported; no spread calculated
Exercise and Sale
4 txns
Insider
Chen Michael
Role
Chief Legal Officer
Sold
67 shs ($3K)
Approx. gross sale proceeds
$3K
Approx. exercise cost
$0.00
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Unit | 105 | $0.00 | $0.00 |
| Exercise | Common Stock | 105 | $41.06 | $4K |
| Sale | Common Stock | 67 | $41.06 | $3K |
| Exercise Price or Tax Liability | Common Stock | 38 | $41.06 | $2K |
Holdings After Transaction:
Restricted Stock Unit — 719 contracts (Direct);
Common Stock — 2,388 shares (Direct)
Footnotes (4)
- F1. Sale effected pursuant to a Rule 10b5-1 trading plan.
- F2. Shares withheld to satisfy tax withholding obligation of the reporting person.
- F3. Represents an award of 5,000 restricted stock units ('RSUs'). 4,176 RSUs vested prior to the Reporting Person becoming a Section 16 officer. The remaining RSUs vest in equal monthly installments until fully vested on October 31, 2026.
- F4. N/A
Key Figures
RSUs exercised: 105 RSUs
Sale price: $41.06 per share
Shares sold: 67 shares
+4 more
7 metrics
RSUs exercised
105 RSUs
Converted into common stock on March 31, 2026
Sale price
$41.06 per share
Open-market sale of 67 common shares
Shares sold
67 shares
Common stock sold on March 31, 2026
Shares withheld for taxes
38 shares
Tax-withholding disposition related to RSU exercise
Common shares held after transactions
2,388 shares
Direct ownership following March 31, 2026 trades
RSUs outstanding after exercise
719 RSUs
Restricted stock units remaining after 105-unit conversion
Total RSU award
5,000 RSUs
Award vesting monthly until October 31, 2026
Key Terms
Restricted Stock Unit, Rule 10b5-1 trading plan, tax withholding obligation, Section 16 officer, +1 more
5 terms
Restricted Stock Unit financial
"Represents an award of 5,000 restricted stock units ('RSUs')."
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
Rule 10b5-1 trading plan regulatory
"Sale effected pursuant to a Rule 10b5-1 trading plan."
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.
tax withholding obligation financial
"Shares withheld to satisfy tax withholding obligation of the reporting person."
Section 16 officer regulatory
"4,176 RSUs vested prior to the Reporting Person becoming a Section 16 officer."
A Section 16 officer is a corporate executive who, under U.S. securities law, must publicly report their purchases and sales of the company’s stock and is subject to rules that can force them to return short-term trading profits. Think of them as an insider required to keep a public trading log so investors can see when executives are buying or selling; that transparency helps investors assess management’s confidence and reduces the risk of undisclosed insider trading.
open-market sale financial
"Sale in open market or private transaction."
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.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did Newegg (NEGG) report for Michael Chen?
Newegg reported that Chief Legal Officer Michael Chen exercised 105 restricted stock units into common stock, then sold 67 shares at $41.06 each. An additional 38 shares were withheld to satisfy tax obligations, leaving him with 2,388 directly held common shares after the transactions.
How are taxes handled in Michael Chen’s Newegg (NEGG) RSU exercise?
In this transaction, 38 Newegg common shares were withheld to satisfy Michael Chen’s tax withholding obligation. This withholding is recorded as a disposition but does not represent an open-market sale; it is a standard mechanism to cover taxes on equity compensation.
What are the vesting terms of Michael Chen’s Newegg (NEGG) RSU award?
Michael Chen holds an award of 5,000 Newegg restricted stock units. Of these, 4,176 RSUs vested before he became a Section 16 officer. The remaining units vest in equal monthly installments until the award is fully vested on October 31, 2026, subject to continued service.
AI-generated analysis. How Rhea-AI works. Not financial advice.
