Form 4: Motorsport Games Director Sells Over 58,000 Shares

Motorsport Games Inc. Director and 10% owner Mike Zoi sold 58,710 shares of Class A Common Stock through a Rule 10b5-1 trading plan.

Summary

• Mike Zoi, a Director and 10% owner of Motorsport Games Inc. (MSGM), sold a total of 58,710 shares of Class A Common Stock.
• The sales occurred over three separate transactions on March 2, 2026, March 3, 2026, and March 4, 2026.
• On March 2, 2026, 6,500 shares were sold at a weighted average price of $3.74, with prices ranging from $3.675 to $3.82.
• On March 3, 2026, 11,675 shares were sold at a weighted average price of $3.77, with prices ranging from $3.65 to $3.84.
• On March 4, 2026, 40,535 shares were sold at a weighted average price of $4.03, with prices ranging from $3.87 to $4.16.
• These transactions were executed pursuant to a Rule 10b5-1 trading arrangement adopted by Mike Zoi on December 31, 2025.
• Following these sales, Mike Zoi's indirect beneficial ownership through Driven Lifestyle Group LLC decreased to 1,336,264 shares of Class A Common Stock.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a moderately negative development. While the sales were pre-planned under a 10b5-1 arrangement, the substantial reduction in a significant insider's stake can weigh on investor sentiment, suggesting a potential lack of conviction in the stock's upside.

Negatives

• A significant insider sale by a Director and 10% owner, Mike Zoi, totaling 58,710 shares, could be interpreted as a lack of confidence in the company's near-term prospects.
• The sales occurred at varying prices, with the final transaction on March 4, 2026, at a higher weighted average price of $4.03, suggesting the insider capitalized on recent price movements.

Risks

• Significant insider selling can signal potential concerns about the company's future performance or valuation, which may lead to negative investor sentiment.
• The market may react negatively to the news of a major shareholder and director reducing their stake, potentially putting downward pressure on the stock price.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider selling, especially by a director and significant owner, often attracts scrutiny from investors. While sales under a Rule 10b5-1 plan are pre-scheduled and designed to avoid accusations of trading on material non-public information, the sheer volume of shares sold by Mike Zoi could still be interpreted by the market as a signal regarding the company's valuation or future prospects within the competitive gaming and motorsports entertainment industry.

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, indicating a related party ownership structure for the transactions.

Stakeholder Impact

• Shareholders may perceive the insider selling as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.
• The company's reputation among investors could be affected if the market interprets the sales as a lack of belief in future growth by a key insider.

Key Dates

Recommendation

The significant insider selling by a Director and 10% owner, even under a 10b5-1 plan, typically signals a lack of conviction in the company's future stock performance. This action by a well-informed insider suggests that the current valuation may be considered fair or even high, prompting a reduction in exposure. For a seasoned investor, this would warrant a 'sell' recommendation, or at least a 'hold' with a strong re-evaluation of the investment thesis, given the potential for negative market sentiment and a lack of insider buying to offset this selling pressure.

Keywords

Motorsport Games Inc., MSGM, Insider Sale, Form 4, Mike Zoi, Director, 10% Owner, Stock Sale, Rule 10b5-1, Class A Common Stock