Form 4: Clearwater Analytics Executive Sells Shares Under 10b5-1 Plan
SEC Form 4
Clearwater Analytics Chief Revenue Officer, Scott Erickson, executed a series of transactions involving the sale of Class A Common Stock and the exercise of stock options, as part of a pre-arranged 10b5-1 trading plan.
Summary
- Scott Erickson, Chief Revenue Officer of Clearwater Analytics, engaged in multiple transactions involving the company's Class A Common Stock on December 10, 2024.
- These transactions included the acquisition of 9,215 shares through the exercise of stock options at a price of $4 per share.
- He also disposed of 5,325 shares to cover tax obligations at a price of $29.0681 per share.
- Additionally, 3,890 shares were sold on the open market at a weighted average price of $29.0681 per share.
- These sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 8, 2024.
- Following these transactions, Erickson directly owns 6,373 shares of Class A Common Stock and 185,385 stock options.
Sentiment
Score: 5
Explanation: The document reflects routine insider trading activity under a pre-arranged plan, which is neither positive nor negative for the company's overall outlook.
Risks
- Executive stock sales can sometimes be perceived negatively by the market, potentially impacting the stock price.
Industry Context
The filing is a routine disclosure of insider trading activity, which is common for publicly traded companies. The use of a 10b5-1 plan is a standard practice for executives to avoid accusations of trading on inside information.
Comparison to Industry Standards
- The use of a 10b5-1 trading plan is a common practice among executives at publicly traded companies, such as those in the technology and financial services sectors, including companies like Salesforce, Workday, and Intuit.
- The reported transactions are typical for executives who receive stock options as part of their compensation packages.
- The sale of shares to cover tax obligations is also a standard practice.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the sale of shares by an executive, but the pre-planned nature of the sales mitigates any significant concern.
Key Dates
| Date | Description |
|---|---|
| 2024-03-08 | Date the Rule 10b5-1 trading plan was adopted by Scott Erickson. |
| 2024-12-10 | Date of the reported transactions including stock option exercise and share sales. |
| 2024-12-11 | Date the Form 4 was signed. |
| 2027-12-31 | Expiration date of the stock options. |
Keywords
Clearwater Analytics, Scott Erickson, insider trading, stock options, Rule 10b5-1, Class A Common Stock, executive compensation, share sale
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