Form 4: LOB CEO Sells 20,000 Shares Under 10b5-1 Plan

Live Oak Bancshares CEO James S. Mahan III sold 20,000 shares of common stock in two transactions totaling over $650,000, executed under a pre-arranged 10b5-1 trading plan.

Summary

• James S. Mahan III, CEO, Director, and 10% Owner of Live Oak Bancshares, Inc. (LOB), disposed of 20,000 shares of Voting Common Stock.
• The sales occurred on March 11, 2026, and March 12, 2026, with 10,000 shares sold each day.
• The shares were sold at weighted average prices of $32.828 and $32.5041, respectively.
• Total proceeds from the sales amount to approximately $653,321.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on August 27, 2025.
• Following these transactions, Mahan's indirect beneficial ownership through the James S. Mahan Revocable Trust decreased to 2,947,844 shares.
• Mahan also indirectly beneficially owns shares through other trusts and an LLC, totaling 6,374,875 shares after these sales.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative signal. While the sales were pre-planned under a 10b5-1, the CEO's decision to sell a significant number of shares could be interpreted by some investors as a lack of strong conviction in the company's immediate future growth, or simply a diversification strategy.

Negatives

• A key insider, the CEO and a 10% owner, sold a significant number of shares (20,000 shares) over two days.
• While executed under a 10b5-1 plan, insider selling can sometimes be perceived as a lack of confidence in the company's near-term growth prospects or a signal that the insider believes the stock is fairly valued or overvalued.

Industry Context

StockSavvy.ai notes that insider selling, even when pre-scheduled via a 10b5-1 plan, is often scrutinized by investors. While 10b5-1 plans are designed to allow insiders to sell shares without being accused of trading on material non-public information, a consistent pattern of insider selling across the industry or within a specific company can sometimes signal that management perceives limited upside or is diversifying personal holdings.

Stakeholder Impact

• Shareholders: May view the CEO's sale as a potential signal regarding the company's valuation or future prospects, potentially leading to negative sentiment or downward pressure on the stock price.

Key Dates

Recommendation

While the CEO's sale of 20,000 shares is notable, it was executed under a pre-arranged 10b5-1 plan, which mitigates the immediate negative implications of an unannounced insider sale. Without additional context on the company's performance or other market factors, a 'hold' recommendation is appropriate as this transaction alone does not provide sufficient grounds for a 'buy' or 'sell' decision, but warrants monitoring for further insider activity or company news.

Keywords

Live Oak Bancshares, LOB, Insider Selling, Form 4, James S. Mahan III, CEO, Stock Sale, 10b5-1 Plan, Beneficial Ownership