Verastem (VSTM) CEO sells 806 shares to cover RSU tax withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Verastem, Inc. President and CEO Dan Paterson reported an open-market sale of 806 shares of common stock at $5.82 per share. After the transaction, he directly holds 612,113 shares of Verastem common stock.
The filing explains that the sale was made to satisfy statutory withholding requirements arising from the vesting of restricted stock units, indicating it was a tax-related transaction tied to equity compensation rather than a discretionary reduction of his overall stake.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Net Seller: 806 shares ($4,691)
Net Sell
1 txn
Insider
Paterson Dan
Role
President and CEO
Sold
806 shs ($5K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 806 | $5.82 | $5K |
Holdings After Transaction:
Common Stock — 612,113 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Shares sold: 806 shares
Sale price per share: $5.82 per share
Shares held after transaction: 612,113 shares
3 metrics
Shares sold
806 shares
Open-market sale on May 4, 2026 to satisfy tax withholding
Sale price per share
$5.82 per share
Price for Verastem common stock in the reported sale
Shares held after transaction
612,113 shares
CEO Dan Paterson’s direct Verastem holdings after the sale
Key Terms
restricted stock units, statutory withholding requirements, open-market sale, Form 4
4 terms
restricted stock units financial
"in connection with the vesting of restricted stock units"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
statutory withholding requirements financial
"shares sold by the Reporting Person to satisfy statutory withholding requirements"
open-market sale financial
"transaction_action": "open-market sale""
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.
Form 4 regulatory
"The sale reported on this Form 4 represents shares sold"
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.
FAQ
What insider transaction did Verastem (VSTM) report in this Form 4?
Verastem reported that President and CEO Dan Paterson sold 806 shares of common stock at $5.82 per share. The transaction is disclosed as an open-market sale and is linked to tax withholding on vested restricted stock units.
Is the Verastem (VSTM) CEO’s sale described as open-market or another type?
The transaction is coded as an open-market sale of common stock in the Form 4. However, the footnote clarifies that the sale’s purpose was to cover statutory withholding taxes related to the vesting of restricted stock units granted as compensation.