Rocket Companies director reports RSU vesting
Rocket Companies director Matthew Rizik reported routine equity compensation activity.
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
Rocket Companies director Matthew Rizik reported routine equity compensation activity. A block of 12,261 Cash-Settled Restricted Stock Units vested and was automatically settled into cash under the 2020 Omnibus Incentive Plan, in a transaction exempt under Rule 16b-3. Related entries show the exercise of derivative rights tied to Class A common stock and an internal reclassification entry, after which Rizik directly holds 1,038,536 shares of Class A common stock, alongside additional indirect holdings of Class L-1 and L-2 common stock through grantor retained annuity trusts.
Insider Trade Summary
12,261 shares exercised/converted
Exercise
9 txns
Insider
Rizik Matthew
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Cash-Settled Restricted Stock Units | 12,261 | $0.00 | $0.00 |
| Exercise | Class A common stock | 12,261 | $0.00 | $0.00 |
| Other | Class A common stock | 12,261 | $12.65 | $155K |
| holding | Class L-1 common stock | -- | -- | -- |
| holding | Class L-2 common stock | -- | -- | -- |
| holding | Class L-1 common stock | -- | -- | -- |
| holding | Class L-2 common stock | -- | -- | -- |
| holding | Class L-1 common stock | -- | -- | -- |
| holding | Class L-2 common stock | -- | -- | -- |
Holdings After Transaction:
Cash-Settled Restricted Stock Units — 120,491 contracts (Direct);
Class A common stock — 1,038,536 shares (Direct);
Class L-1 common stock — 1,386,005 shares (Direct);
Class L-2 common stock — 986,005 shares (Direct);
Class L-1 common stock — 675,000 shares (Indirect, By grantor retained annuity trust (GRAT));
Class L-2 common stock — 825,000 shares (Indirect, By grantor retained annuity trust (GRAT));
Class L-1 common stock — 1,125,000 shares (Indirect, By grantor retained annuity trust (GRAT) no. 2);
Class L-2 common stock — 1,375,000 shares (Indirect, By grantor retained annuity trust (GRAT) no. 2)
Footnotes (1)
- F1. Represents the vesting and automatic settlement into cash of a portion of the Cash Settled Restricted Stock Units ("Cash-Settled RSUs") previously granted under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan in a transaction exempt under Rule 16b-3 and approved by a committee of independent directors. Each Cash-Settled RSU represents the right to receive a cash payment equal to the fair market value of a share of the Issuer's common stock on the settlement date. The Cash-Settled RSUs vest in six semi-annual installments over three years.
Key Figures
Cash-Settled RSUs vested: 12,261 units
Reference transaction price: $12.65 per share
Direct Class A holdings: 1,050,797 shares
+5 more
8 metrics
Cash-Settled RSUs vested
12,261 units
Portion of Cash-Settled RSUs vested and settled into cash
Reference transaction price
$12.65 per share
Price shown for "other" transaction in Class A common stock
Direct Class A holdings
1,050,797 shares
Total Class A common stock held directly after transactions
Indirect Class L-2 via GRAT no. 2
1,375,000 shares
Class L-2 common stock held indirectly by GRAT no. 2
Indirect Class L-1 via GRAT no. 2
1,125,000 shares
Class L-1 common stock held indirectly by GRAT no. 2
Direct Class L-2 holdings
986,005 shares
Class L-2 common stock held directly after reported entries
Direct Class L-1 holdings
1,386,005 shares
Class L-1 common stock held directly after reported entries
Remaining Cash-Settled RSUs
120,491 units
Cash-Settled Restricted Stock Units remaining after 12,261-unit exercise
Key Terms
Cash Settled Restricted Stock Units, grantor retained annuity trust (GRAT), Rule 16b-3, 2020 Omnibus Incentive Plan, +1 more
5 terms
Cash Settled Restricted Stock Units financial
"Represents the vesting and automatic settlement into cash of a portion of the Cash Settled Restricted Stock Units ("Cash-Settled RSUs")"
Cash-settled restricted stock units are employee compensation promises that mirror the value of company shares but pay out in cash instead of delivering actual stock once the units vest. Think of them as a future paycheck tied to the company’s share price that is paid after time or performance conditions are met. Investors watch them because they create future cash obligations for the company and avoid share dilution, both of which can affect earnings, cash flow and per-share metrics.
grantor retained annuity trust (GRAT) financial
"nature_of_ownership": "By grantor retained annuity trust (GRAT) no. 2""
Rule 16b-3 regulatory
"in a transaction exempt under Rule 16b-3 and approved by a committee of independent directors"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
2020 Omnibus Incentive Plan financial
"previously granted under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan"
derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider activity did Rocket Companies (RKT) report for Matthew Rizik?
Rocket Companies reported that director Matthew Rizik had 12,261 Cash-Settled Restricted Stock Units vest and automatically settle into cash. The filing also records related derivative exercises and internal reclassification entries affecting his Class A common stock holdings.
What are Cash-Settled Restricted Stock Units in Rocket Companies (RKT) Form 4?
The Cash-Settled RSUs represent the right to receive a cash payment equal to the fair market value of a Rocket Companies common share on the settlement date. In this filing, 12,261 such RSUs vested and were settled in cash under the company’s 2020 Omnibus Incentive Plan.
Were any open-market buys or sells of Rocket Companies (RKT) stock reported?
The filing does not report any open-market purchases or sales. Instead, it shows derivative exercises and a cash settlement of 12,261 Cash-Settled RSUs, plus an internal "other" transaction entry, all recorded as compensation or restructuring-type events rather than market trades.
AI-generated analysis. How Rhea-AI works. Not financial advice.
