Form 4: Clearwater Analytics Holdings Inc. Executive Scott Erickson Reports Stock Transactions
SEC Form 4 Filing
Chief Revenue Officer Scott Erickson reports exercising stock options and selling shares of Clearwater Analytics Holdings Inc. Class A Common Stock on March 3, 2025.
Summary
- On March 3, 2025, Scott Erickson, Chief Revenue Officer of Clearwater Analytics Holdings, Inc., executed multiple transactions involving Class A Common Stock.
- Erickson exercised stock options to acquire 9,722 shares at an exercise price of $4.
- Simultaneously, Erickson disposed of 5,581 shares to cover tax withholding obligations at a price of $30.8159.
- He also sold 4,141 shares at $30.18 and 116,722 shares at a weighted average price of $30.8029, pursuant to a pre-arranged Rule 10b5-1 trading plan.
- Following these transactions, Erickson directly owns 124,624 shares of Class A Common Stock and 175,663 derivative securities (stock options).
Sentiment
Score: 5
Explanation: Neutral sentiment as the filing simply reports transactions. The use of a 10b5-1 plan suggests pre-planned diversification rather than a reaction to current company performance.
Future Outlook
The reporting person will continue to execute sales under a pre-arranged Rule 10b5-1 trading plan.
Industry Context
Executive stock transactions are a common occurrence in publicly traded companies and are often scrutinized by investors for insights into management's perspective on the company's valuation and future prospects. Rule 10b5-1 plans are frequently used to allow insiders to sell shares without being accused of trading on non-public information.
Comparison to Industry Standards
- Executive compensation packages often include stock options as a way to align management's interests with those of shareholders.
- The use of Rule 10b5-1 trading plans is a standard practice among corporate executives to diversify their holdings and manage personal finances while avoiding accusations of insider trading.
- Companies like Salesforce, Microsoft, and Oracle also see regular Form 4 filings from their executives related to stock option exercises and sales.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the increased supply of shares in the market.
- The use of a 10b5-1 trading plan provides transparency and reduces the risk of insider trading concerns.
Key Dates
| Date | Description |
|---|---|
| 2018-01-24 | Vesting of 120,000 shares. |
| 2019-01-16 | Vesting of 120,000 shares. |
| 2020-01-21 | Vesting of 120,000 shares. |
| 2020-11-02 | Vesting of 198,000 shares. |
| 2021-03-05 | Vesting of 21,000 shares. |
| 2022-01-01 | Vesting of 21,000 shares. |
| 2024-11-22 | Adoption date of Rule 10b5-1 trading plan. |
| 2025-03-03 | Date of stock option exercise and share sales. |
| 2027-12-31 | Expiration date of stock options. |
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