Form 4: Intuitive Machines CEO Stephen Altemus Executes Stock and Unit Transactions

CEO Stephen Altemus converted Common Units to Class A Common Stock and sold shares under a pre-arranged Rule 10b5-1 plan.

Summary

• On July 16, 2024, Stephen J Altemus, CEO of Intuitive Machines, Inc., engaged in transactions involving the company's stock and Common Units.
• Altemus converted 203,018 Common Units into Class A Common Stock.
• Concurrently, 203,018 shares of Class C Common Stock were cancelled.
• Altemus also sold 203,018 shares of Class A Common Stock at a weighted average price of $4.5286 per share, with prices ranging from $4.50 to $4.58.
• These sales were executed under a Rule 10b5-1 plan adopted on March 22, 2024.
• Following these transactions, Altemus directly owns 910,919 shares of Class A Common Stock and 16,378,685 shares of Class C Common Stock.
• He also holds 18,139,195 Common Units.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The use of a 10b5-1 plan suggests pre-planned diversification, not necessarily a negative signal, but the market reaction will depend on investor perception.

Risks

• Sales by insiders, even under a 10b5-1 plan, can sometimes be perceived negatively by the market.

Future Outlook

The document does not contain any specific forward-looking statements beyond the ongoing execution of the Rule 10b5-1 plan.

Industry Context

Insider transactions are a normal part of corporate governance, but are closely watched by investors for signals about management's confidence in the company's future prospects. The use of a pre-arranged 10b5-1 plan suggests the transactions were planned in advance to avoid any accusations of trading on inside information.

Comparison to Industry Standards

• It is common for executives to use 10b5-1 plans to diversify their holdings or manage personal finances.
• The volume of shares sold is relatively small compared to the total outstanding shares of Intuitive Machines.
• Comparable companies such as SpaceX or Blue Origin do not have publicly traded stock, making direct comparisons difficult.

Stakeholder Impact

• The transactions could have a minor impact on shareholders depending on how the market interprets the insider selling.
• Employees may be indirectly affected by any market reaction to the news.

Key Dates