Expion360 Chief Operating Officer Awarded $242K Worth of Stock Options

Brian Schaffner, Chief Operating Officer at Expion360 XPON, reported a large acquisition of company stock options on August 28, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Schaffner, Chief Operating Officer at Expion360, a company in the Industrials sector, was just awarded stock options worth 50,000 shares of XPON. The options give Schaffner the right to buy the company's stock at $4.92 per share.

Expion360 shares are trading up 2.83% at $4.84 at the time of this writing on Tuesday morning. Since the current price is $4.84, this makes Schaffner's 50,000 shares worth $242,155.

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Why Insider Transactions Are Important

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 Expion360's Insider Trades.

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