Is Brady Stock a Buy or Sell After Its CFO Sold Over 4,000 Shares? | The Motley Fool

Ann Thornton, CFO and Treasurer of Brady Corporation ( BRC 0.10%), exercised 4,080 stock options for Class A Common Stock and immediately sold the underlying shares for a total transaction value of approximately $334,356, according to the SEC Form 4 filing . Transaction summary Metric Value Shares sold (direct) 4,080 Transaction value ~$334,356 Post-transaction shares (direct) 28,935 Post-transaction value (direct ownership) ~$2,342,867 Transaction value based on SEC Form 4 weighted average purchase price ($81.95); post-transaction value based on Dec. 19, 2025 market close ($80.97). Key questions What was the structure and purpose of this transaction? The transaction was a derivative event, in which Ms. Thornton exercised 4,080 options for Class A Common Stock and immediately sold all resulting shares on the open market, effectively converting option value to cash without increasing net equity exposure. How did this sale impact insider ownership? Ms. Thornton's direct holdings fell by 12.36%, from 33,015 shares to 28,935 shares, and she retained no indirect ownership; her post-sale direct equity position was valued at approximately $2.34 million as of Dec. 19, 2025. How does the timing and scale compare to her historical trading activity? This is the first open-market disposition reported for Ms. Thornton over the analyzed period, with previous filings limited to administrative or option-related activity and no prior sales or gifts. Was the transaction size influenced by remaining option capacity? Yes, the 4,080-share exercise and sale align with the available remaining option capacity and mark Ms. Thornton's only open-market disposition during the analyzed period. Company overview Metric Value Revenue (TTM) $1.54 billion Net income (TTM) $195.67 million Dividend yield 1.21% 1-year price change 7.79% * 1-year performance calculated using Dec. 19th, 2025 as the reference date. Company snapshot Brady Corporation provides identification solutions and workplace safety products, including safety signs, labeling systems, RFID/barcode scanners, and compliance software. It generates revenue through the sale of proprietary identification and safety products, complemented by related software and services, distributed via direct sales, distributors, catalog, and digital channels. The company serves industrial, healthcare, chemical, oil and gas, automotive, aerospace, government, education, and utility sectors globally. Brady Corporation is an established provider of identification and workplace safety solutions with a global footprint and a diversified industrial customer base. The company leverages a broad product portfolio and multi-channel distribution to serve a wide range of customers. Its product portfolio includes compliance-driven products and high-value identification systems. What this transaction means for investors CFO Ann Thornton's sale of 4,080 shares in Brady is not necessarily a cause for concern. She still retained nearly 30,000 shares after the transaction. The sale came at a time when Brady stock was in an upswing. Shares hit a 52-week high of $84.03 on Sept. 4, and Ms. Thornton's sale in December occurred at a weighted average price of $81.95. This was a good time to sell, considering the stock's price-to-earnings ratio (P/E) of 19.5 was near a three-year high. Brady stock is up thanks to its strong financial performance. In its fiscal first quarter, ended...

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