Form 4: Intuitive Machines SVP Timothy Crain II Sells Shares Under 10b5-1 Plan

Timothy Price Crain II, SVP and Chief Growth Officer of Intuitive Machines, sold shares of Class A Common Stock on July 1st and 3rd, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Timothy Price Crain II, SVP and Chief Growth Officer of Intuitive Machines, filed a Form 4 detailing changes in beneficial ownership.
• On July 1, 2024, Crain converted 50,000 Common Units into Class A Common Stock and sold 50,000 shares of Class A Common Stock at a weighted average price of $3.3639.
• On July 3, 2024, Crain converted 6,011 Common Units into Class A Common Stock and sold 6,011 shares of Class A Common Stock at a weighted average price of $4.0002.
• These transactions were executed under a Rule 10b5-1 plan adopted on March 22, 2024.
• Following these transactions, Crain directly owns 362,810 shares of Class A Common Stock and 10,445,446 shares of Class C Common Stock.
• Crain also directly owns 11,560,405 Common Units which can be redeemed for Class A Common Stock on a one-to-one basis.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of stock sales by an executive. The use of a 10b5-1 plan suggests the sales were pre-planned and not necessarily indicative of a negative outlook. Therefore, the sentiment is neutral.

Negatives

• The sale of shares by a high-ranking executive could be perceived negatively by investors.

Risks

• Executive stock sales can sometimes signal a lack of confidence in the company's future prospects, although this sale was conducted under a pre-arranged 10b5-1 plan.

Industry Context

Executive stock sales are a common occurrence in publicly traded companies. The use of a 10b5-1 plan allows insiders to sell shares over a predetermined period, mitigating concerns about insider trading.

Comparison to Industry Standards

• Executive compensation and stock ownership are typical for companies of Intuitive Machines' size and stage.
• Rule 10b5-1 plans are a standard practice for corporate insiders to manage their stock sales while avoiding accusations of insider trading, similar to practices at companies like SpaceX or Blue Origin.

Stakeholder Impact

• The stock sales could have a minor impact on shareholder sentiment.

Key Dates