Form 4: Clearwater Analytics CFO Exercises Options and Sells Shares

Clearwater Analytics' Chief Financial Officer, James S. Cox, exercised stock options and sold shares on November 15, 2024, according to a recent SEC filing.

Summary

• On November 15, 2024, James S. Cox, the Chief Financial Officer of Clearwater Analytics Holdings, Inc., engaged in multiple transactions involving the company's Class A Common Stock.
• Mr. Cox exercised stock options to acquire 32,490 shares at a price of $4.40 per share.
• He then sold 18,790 shares to cover tax obligations at a price of $30.339 per share.
• Additionally, Mr. Cox sold 13,700 shares at a weighted average price of $30.339 and 5,000 shares at a weighted average price of $30.3336.
• These sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 11, 2024.
• Following these transactions, Mr. Cox directly owns 219,044 shares of Class A Common Stock and 41,983 stock options.

Sentiment

Score: 5

Explanation: The document reflects routine insider transactions, which are neither positive nor negative for the company's overall outlook. The use of a 10b5-1 plan suggests these transactions were planned and not indicative of any change in sentiment.

Industry Context

This is a routine filing related to insider transactions and is common for executives who hold stock options and shares in publicly traded companies. The use of a 10b5-1 plan is a common practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a standard practice among executives at publicly traded companies, such as those in the technology and financial services sectors, to manage their stock transactions.
• Similar filings are regularly seen from executives at companies like Workday, Inc. (WDAY) and Intuit Inc. (INTU), where stock-based compensation is a significant part of executive pay.
• The reported sale prices are within the typical range for transactions of this nature, reflecting the current market valuation of Clearwater Analytics.

Stakeholder Impact

• The transactions may have a minor impact on the stock price due to the volume of shares sold, but the pre-planned nature of the sales should mitigate any significant negative reaction from shareholders.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Clearwater Analytics, CWAN, SEC Form 4, insider trading, stock options, share sales, Rule 10b5-1, James S. Cox, CFO