Form 4: CarGurus Executive Chair Langley Steinert Sells Shares Under 10b5-1 Plan

Langley Steinert, Executive Chair of CarGurus, sold shares of Class A Common Stock on January 21 and 22, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Langley Steinert, the Executive Chair of CarGurus, Inc., executed sales of Class A Common Stock on January 21 and 22, 2025.
• The sales were conducted under a Rule 10b5-1 trading plan.
• On January 21, 2025, Steinert sold 45,407 shares at a weighted average price of $38.152, with individual prices ranging from $37.775 to $38.52 per share.
• An additional 5,042 shares were sold on the same day.
• On January 22, 2025, Steinert sold 45,407 shares at a weighted average price of $38.4003, with individual prices ranging from $38.11 to $38.64 per share.
• An additional 5,042 shares were sold on the same day.
• Following these transactions, Steinert directly owns 707,242 shares and indirectly owns 31,200 shares through The Langley Steinert Irrevocable Family Trust.
• Steinert disclaims beneficial ownership of the shares held by the family trust.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating insider transactions. The use of a 10b5-1 plan suggests the sales were pre-planned and routine, thus the sentiment is neutral.

Industry Context

Insider sales are a common occurrence, and the use of a 10b5-1 plan suggests the sales were pre-planned and not based on current inside information. Investors often monitor insider transactions for signals about a company's prospects, but sales under a 10b5-1 plan are generally viewed as less informative.

Comparison to Industry Standards

• Comparing Langley Steinert's transactions to other executives in similar tech companies like AutoTrader or Cars.com, the use of 10b5-1 plans for regular stock sales is a standard practice.
• The volume of shares sold is relatively small compared to the total outstanding shares of CarGurus, which is typical for executives managing their personal portfolios.
• Similar to other executives, Steinert's indirect ownership through a family trust is a common wealth management strategy.

Stakeholder Impact

• The stock sales may have a minor impact on shareholders, but the pre-planned nature of the sales under a 10b5-1 plan mitigates concerns about insider information being used.

Key Dates