Form 4: Clearwater Analytics CFO James Cox Reports Stock Transactions

Clearwater Analytics CFO James Cox reports the exercise of stock options, tax withholding, and sales of Class A Common Stock.

Summary

• James Cox, CFO of Clearwater Analytics Holdings, Inc., reported transactions involving Class A Common Stock on February 18, 2025.
• These transactions included the exercise of stock options for 33,176 shares at a price of $4.4, the disposition of 19,476 shares to cover tax withholding obligations at $27.3294, and the sale of 18,700 shares at weighted average prices of $27.3143 and $27.3707.
• Following these transactions, Cox directly owns 274,857 shares of Class A Common Stock.
• He also acquired 125,000 Restricted Stock Units (RSUs) on February 13, 2025, which vest quarterly over four years starting January 1, 2025.
• Cox continues to hold 492,586 stock options.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While there are stock sales, they are under a pre-arranged plan. The RSU grants are a positive sign.

Positives

• The acquisition of 125,000 Restricted Stock Units (RSUs) indicates continued alignment with the company's long-term success.

Negatives

• The sale of shares by the CFO could be perceived negatively by some investors, although it was conducted under a pre-arranged trading plan.

Risks

• Executive stock sales can sometimes create uncertainty in the market, even when conducted under a 10b5-1 plan.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedule of the RSUs suggests continued executive commitment.

Industry Context

Insider transactions are common and closely monitored in the financial analytics industry. Investors often use this information to gauge executive sentiment and company performance.

Comparison to Industry Standards

• Comparing Clearwater Analytics' insider trading activity to peers like Envestnet or FactSet requires analyzing similar Form 4 filings for those companies.
• The use of 10b5-1 trading plans is a standard practice among executives to avoid accusations of insider trading, aligning with industry norms.

Stakeholder Impact

• Shareholders may react to the stock sales, but the pre-arranged nature of the transactions should mitigate concerns.
• Employees may view the RSU grants as a positive sign of company commitment to its executives.

Key Dates

Keywords

Clearwater Analytics, CWAN, James Cox, CFO, Stock Options, Restricted Stock Units, Form 4, Insider Trading, Rule 10b5-1, Stock Sale