Outset Medical (OM) General Counsel reports tax-related RSU sell-to-cover trade
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Outset Medical, Inc. General Counsel John L. Brottem reported an open-market sale of 2,638 shares of Common Stock at $3.70 per share. According to the footnotes, this was a required "sell to cover" transaction to satisfy tax withholding obligations tied to the vesting of 5,033 RSU-based shares and is not a discretionary trade. After this tax-related sale, Brottem directly holds 30,277 shares of Common Stock. A separate footnote notes a correction to a previously reported 2,842-share tax-related sale, revising it to 2,862 shares due to an administrative error.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 2,638 shares ($9,761)
Net Sell
1 txn
Insider
Brottem John L.
Role
General Counsel
Sold
2,638 shs ($10K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 2,638 | $3.70 | $10K |
Holdings After Transaction:
Common Stock — 30,277 shares (Direct, null)
Footnotes (1)
- Required number of shares sold by the reporting person to cover tax withholding obligations in connection with the vesting of an aggregate of 5,033 shares of Common Stock underlying RSUs granted to the reporting person on January 12, 2024 and June 10, 2025. This sale was made to satisfy tax withholding obligations through a "sell to cover" transaction and does not represent a discretionary trade by the reporting person. This balance reflects a correction to the number of shares of Common Stock sold by the reporting person to satisfy tax withholding obligations as previously reported on a Form 4 filed on February 19, 2026. Due to an administrative error, the prior Form 4 reported the sale of 2,842 shares instead of the correct number, 2,862 shares.
Key Figures
Shares sold: 2,638 shares
Sale price per share: $3.70 per share
Shares held after transaction: 30,277 shares
+2 more
5 metrics
Shares sold
2,638 shares
Open-market sale on May 15, 2026
Sale price per share
$3.70 per share
Open-market sale on May 15, 2026
Shares held after transaction
30,277 shares
Direct Common Stock holdings after sale
RSU-related shares vesting
5,033 shares
Common Stock underlying RSUs vesting tied to tax sale
Corrected prior tax sale
2,862 shares
Revised from 2,842 shares in prior Form 4
Key Terms
RSUs, sell to cover, tax withholding obligations, Form 4, +1 more
5 terms
RSUs financial
"shares of Common Stock underlying RSUs granted to the reporting person"
RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.
sell to cover financial
"This sale was made to satisfy tax withholding obligations through a "sell to cover" transaction"
Sell to cover is when a person who receives company stock through options or awards sells just enough shares immediately to pay required taxes, exercise costs, or fees, keeping the rest. Think of it like cashing part of a bonus to cover the tax bill so you can keep the remainder. For investors, it can create predictable small selling pressure and slightly change the number of shares actually held by insiders without increasing long‑term dilution.
tax withholding obligations financial
"Required number of shares sold by the reporting person to cover tax withholding obligations"
Form 4 regulatory
"as previously reported on a Form 4 filed on February 19, 2026"
Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.
administrative error other
"Due to an administrative error, the prior Form 4 reported the sale of 2,842 shares"
FAQ
What insider transaction did Outset Medical (OM) report for John L. Brottem?
Outset Medical’s General Counsel John L. Brottem reported selling 2,638 shares of Common Stock at $3.70 per share. The filing explains this sale was executed specifically to cover tax withholding obligations related to recently vested RSU awards, rather than as a discretionary stock trade.
Was the Outset Medical (OM) insider sale by John L. Brottem a discretionary trade?
The sale was not a discretionary trade by John L. Brottem. Footnotes state the 2,638 shares were sold through a "sell to cover" transaction required to satisfy tax withholding obligations arising from the vesting of 5,033 RSU-based Common Stock shares.
Did Outset Medical (OM) correct any prior Form 4 data for John L. Brottem?
Yes. A footnote explains a correction to a prior Form 4 filed on February 19, 2026, changing a previously reported tax-withholding sale from 2,842 shares to the correct 2,862 shares. The current balance reflects this administrative correction.
What is a "sell to cover" transaction in the context of Outset Medical (OM) RSUs?
A "sell to cover" transaction sells enough shares to pay required taxes when RSUs vest. For Outset Medical, Brottem’s 2,638-share sale was executed specifically to satisfy tax withholding on 5,033 vested RSU shares, rather than representing an elective decision to reduce his holdings.