Form 4: Clearwater Analytics CFO James Cox Executes Stock Option and Sells Shares Under 10b5-1 Plan

Clearwater Analytics CFO James Cox exercised stock options and sold shares of Class A Common Stock on May 15, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On May 15, 2025, James S Cox, CFO of Clearwater Analytics Holdings, Inc., exercised stock options to acquire 34,114 shares of Class A Common Stock at a price of $4.40 per share.
• Following the exercise, Cox disposed of shares to cover tax withholding obligations, as mandated by the issuer.
• Cox also sold 18,700 shares of Class A Common Stock in the open market at a weighted average price of $23.9035 and $23.9042 per share, respectively, under a Rule 10b5-1 trading plan.
• After these transactions, Cox beneficially owns 353,885 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: Neutral sentiment. The transactions are part of a pre-planned strategy and do not necessarily indicate a change in the executive's outlook on the company.

Positives

• The exercise of stock options indicates confidence in the company's future prospects.

Negatives

• The sale of shares, even under a pre-arranged plan, could be perceived negatively by some investors.

Risks

• Sales under the 10b5-1 plan could continue, potentially creating downward pressure on the stock price.
• Market conditions could impact the effectiveness of the 10b5-1 trading plan.

Industry Context

Insider transactions are common and closely monitored in the financial analytics industry. The use of 10b5-1 plans is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• Companies like FactSet, MSCI, and SS&C Technologies also have executives who utilize 10b5-1 trading plans.
• The volume of shares traded is relatively small compared to the overall market capitalization of Clearwater Analytics.
• Executive compensation structures, including stock options, are typical in the software and financial technology sectors.

Stakeholder Impact

• The transactions could have a minor impact on shareholders due to the potential for slight price fluctuations.
• Employees may be interested in the executive's transactions as an indicator of company performance.

Key Dates

Keywords

Clearwater Analytics, CWAN, James Cox, CFO, stock options, Form 4, 10b5-1 trading plan, insider trading, share sale