CEO at Worksport Acquires Company Stock Options Worth 2,000,000 Shares

Steven Rossi, CEO at Worksport WKSP, reported a large acquisition of company stock options on May 3, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Rossi, CEO at Worksport, a company in the Consumer Discretionary sector, was just awarded stock options worth 2,000,000 shares of WKSP. The options give Rossi the right to buy the company's stock at $1.74 per share.

Worksport shares are trading up 9.52% at $1.81 at the time of this writing on Thursday morning. Since the current price is $1.81, this makes Rossi's 2,000,000 shares worth $3,614,000.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Worksport's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.