Form 4: Intuitive Machines Director Kamal Ghaffarian Sells Shares Under 10b5-1 Plan

Kamal Ghaffarian, a director and 10% owner of Intuitive Machines, sold 148,290 shares of Class A Common Stock at an average price of $6.0345, while also converting Common Units into Class A Common Stock and Class C Common Stock.

Summary

• On August 20, 2024, Kamal Seyed Ghaffarian, a director and 10% owner of Intuitive Machines, engaged in transactions involving the company's stock.
• Ghaffarian converted 148,290 Common Units into Class A Common Stock and Class C Common Stock.
• He also sold 148,290 shares of Class A Common Stock at a weighted average price of $6.0345 per share, with prices ranging from $6.00 to $6.12.
• These sales were executed under a pre-arranged Rule 10b5-1 plan adopted on March 22, 2024.
• Following these transactions, Ghaffarian's beneficial ownership includes shares held directly and indirectly through various entities like GM Enterprises, LLC, Intuitive Machines KG Parent, LLC, and Ghaffarian Enterprises, LLC.
• The report also corrects an omission from a previous Form 4 filed on June 12, 2024, regarding earn-out units held by these entities, which are subject to forfeiture.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it primarily reports transactions. The sales could be interpreted negatively, but the use of a pre-arranged 10b5-1 plan mitigates this concern.

Industry Context

This filing reflects insider trading activity, which is a common occurrence in publicly traded companies. Monitoring such activity can provide insights into management's perspective on the company's valuation and future prospects.

Comparison to Industry Standards

• Insider sales are a normal part of the stock market, and the use of a 10b5-1 plan is a common practice to avoid accusations of trading on inside information.
• Comparable companies such as SpaceX, Blue Origin, and Virgin Galactic, which are privately held, do not have similar reporting requirements, making direct comparison difficult.
• However, publicly traded space companies like Rocket Lab (RKLB) and Astra Space (ASTR) are subject to similar SEC regulations regarding insider trading.

Stakeholder Impact

• Shareholders may react to the insider selling activity, potentially impacting the stock price.
• The transactions do not appear to directly impact employees, customers, suppliers, or creditors.

Key Dates