Form 4: Intuitive Machines CEO Stephen Altemus Executes Stock Sales Under 10b5-1 Plan

Intuitive Machines' CEO, Stephen Altemus, sold shares of Class A Common Stock on September 18 and 19, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Stephen Altemus, CEO of Intuitive Machines, Inc., reported transactions involving the company's stock.
• On September 18, 2024, Altemus converted 300,000 Common Units into Class A Common Stock and sold 300,000 shares of Class A Common Stock at a weighted average price of $8.2375 per share.
• On September 19, 2024, Altemus converted 250,000 Common Units into Class A Common Stock and sold 250,000 shares of Class A Common Stock at a weighted average price of $9.0105 per share.
• 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 13,781,703 shares of Class C Common Stock.
• Altemus also directly owns 15,542,213 Common Units of Intuitive Machines, LLC, which can be redeemed for Class A Common Stock on a one-to-one basis.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document simply reports stock transactions by the CEO under a pre-arranged plan. It doesn't inherently indicate positive or negative sentiment about the company's future.

Industry Context

Insider trading activity is always closely watched by investors as it can provide signals, though often noisy, about management's view of the company's prospects. The use of a 10b5-1 plan suggests the sales were pre-planned and intended to avoid accusations of trading on inside information.

Comparison to Industry Standards

• It's common for executives at publicly traded companies, including those in the aerospace sector like SpaceX, Boeing, and Lockheed Martin, to utilize 10b5-1 plans for stock sales to avoid insider trading accusations.
• The volume and frequency of these sales are typical for executives managing their personal finances, but the market will scrutinize the timing and amounts relative to Intuitive Machines' performance and future prospects.
• Comparing Altemus's transactions to those of executives at similar-stage space exploration companies would provide a more relevant benchmark.

Stakeholder Impact

• Shareholders may react to the CEO's stock sales, although the existence of a 10b5-1 plan mitigates concerns about insider information.
• The sales could slightly increase the stock's float, potentially impacting liquidity.

Key Dates