Form 4: Insider Sells MSGM Shares Under 10b5-1 Plan

Motorsport Games Director and 10% owner Mike Zoi sold over 24,000 Class A Common Stock shares through a pre-arranged trading plan.

Summary

• Mike Zoi, a Director and 10% owner of Motorsport Games Inc. (MSGM), sold a total of 24,024 shares of Class A Common Stock.
• These sales occurred on February 25, 2026, February 26, 2026, and February 27, 2026.
• The transactions were executed under a Rule 10b5-1 trading arrangement adopted on December 31, 2025.
• The shares were sold at weighted average prices of $3.58, $3.52, and $3.71, respectively.
• Following these transactions, Zoi, through Driven Lifestyle Group LLC, beneficially owns 1,394,974 shares of Class A Common Stock.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative signal due to a significant insider reducing their stake, even though it was pre-planned. While 10b5-1 plans mitigate concerns about opportunistic timing, the underlying decision to sell a substantial number of shares by a director and 10% owner can still be interpreted as a lack of strong conviction in the near-term upside.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned divestment rather than an immediate reaction to new information.

Negatives

• A significant insider, who is also a 10% owner, has reduced their stake in the company.
• The sales occurred over three consecutive days, indicating a consistent reduction in holdings.

Risks

• Insider selling by a Director and 10% owner could be perceived negatively by the market, potentially signaling a lack of confidence in future stock performance, even if executed under a 10b5-1 plan.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The reporting person undertakes to provide to Motorsport Games Inc., any security holder of Motorsport Games Inc. or the Staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.

Industry Context

StockSavvy.ai notes that insider selling, even under a 10b5-1 plan, is a common occurrence in the market. However, when a significant owner and director reduces their stake, it can sometimes be interpreted by investors as a signal, regardless of the pre-planned nature. The gaming industry, particularly niche segments like motorsport games, can be volatile, and insider transactions are often scrutinized for insights into management's perception of future prospects.

Comparison to Industry Standards

• NA

Related Party Transactions

• The shares are owned directly by Driven Lifestyle Group LLC, and indirectly by Mike Zoi as Manager of Driven Lifestyle Group LLC.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a negative signal, potentially leading to downward pressure on the stock price.
• Management/Employees: No direct impact mentioned, but a significant insider's divestment could affect morale or perception of company stability.

Next Steps

• The reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the reported ranges upon request.

Key Dates

Recommendation

While insider selling by a director and 10% owner is generally a negative signal, the execution under a Rule 10b5-1 plan suggests a pre-determined divestment strategy rather than an immediate reaction to adverse non-public information. This mitigates the severity of the signal. However, the consistent reduction in holdings by a significant insider warrants caution, suggesting a 'hold' rather than a 'buy' or 'sell' until further company performance or strategic updates are available to provide a clearer picture of the company's trajectory.

Keywords

Motorsport Games, MSGM, Mike Zoi, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Director, 10% Owner, Equity Sales