Form 4: C3.ai Director Richard C. Levin Executes Stock Option and Sells Shares Under 10b5-1 Plan

Director Richard C. Levin exercised stock options and sold shares of C3.ai, Inc. Class A Common Stock on February 3, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On February 3, 2025, Richard C. Levin, a director of C3.ai, Inc., executed a transaction involving Class A Common Stock.
• Levin exercised stock options to acquire 12,000 shares at a price of $4.68 per share.
• Simultaneously, Levin sold 12,000 shares at a weighted average price of $29.84, with prices ranging from $29.68 to $30.00.
• These transactions were conducted under a pre-established Rule 10b5-1 trading plan dated September 29, 2024.
• Following these transactions, Levin directly owns 161,664 shares of Class A Common Stock and holds options for 39,955 shares.
• The stock options vest over time, contingent on Levin's continued service as a director and attendance at board meetings.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing insider trading activity. It doesn't inherently convey positive or negative sentiment about the company's performance or prospects. The transactions are part of a pre-arranged plan, suggesting a neutral outlook.

Future Outlook

The vesting of the remaining stock options is contingent upon the reporting person remaining a director of the company and attending regularly scheduled board meetings.

Industry Context

This filing is a routine disclosure of insider transactions, which are common among publicly traded companies. Directors often have stock options as part of their compensation, and their exercise and sale of shares are subject to regulatory oversight to prevent insider trading.

Comparison to Industry Standards

• The use of Rule 10b5-1 trading plans is a common practice among corporate insiders to manage their stock transactions and avoid accusations of insider trading.
• The vesting schedule of the stock options, contingent on continued service and attendance at board meetings, is a typical arrangement to incentivize directors to remain engaged with the company.
• Comparing the director's trading activity to that of other directors in similar AI-focused companies (e.g., Palantir, DataRobot) could provide insights into the relative attractiveness of C3.ai's stock.

Stakeholder Impact

• The transactions may have a minor impact on shareholders, as they involve the sale of shares by a director.
• The impact is likely to be minimal, given that the transactions were conducted under a pre-arranged trading plan and the volume of shares traded is relatively small.

Key Dates

Keywords

C3.ai, Richard C. Levin, stock options, Class A Common Stock, Rule 10b5-1, director, insider trading, SEC Form 4