Form 4: Motorsport Games Director Sells Shares

Motorsport Games Inc. director and 10% owner Mike Zoi reported the sale of 62,828 Class A common shares through a pre-arranged trading plan.

Summary

• Mike Zoi, a Director and 10% owner of Motorsport Games Inc. (MSGM), reported the sale of Class A Common Stock.
• A total of 62,828 shares were sold across three transactions between February 20, 2026, and February 24, 2026.
• The sales were executed under a Rule 10b5-1 trading arrangement adopted on December 31, 2025.
• The shares were indirectly owned by Mike Zoi through Driven Lifestyle Group LLC, which changed its name from Motorsport Network LLC effective October 27, 2023.
• Following these transactions, Mike Zoi, through Driven Lifestyle Group LLC, beneficially owns 1,417,557 shares of Class A Common Stock.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative signal due to significant insider selling, even though it was pre-planned. While 10b5-1 plans mitigate concerns about timing, the sheer volume of shares sold by a key insider can still weigh on investor sentiment.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a structured approach to share disposition rather than an immediate reaction to new, non-public information.

Negatives

• A significant insider, a director and 10% owner, sold a total of 62,828 shares of Class A Common Stock.
• The sales occurred at weighted average prices ranging from $3.29 to $3.62 per share.

Risks

• Insider selling, even under a 10b5-1 plan, can sometimes be perceived negatively by the market, potentially signaling a lack of confidence or a desire to diversify holdings.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategy. It solely reports past insider transactions.

Industry Context

StockSavvy.ai notes that insider selling, even under a Rule 10b5-1 plan, is a common occurrence in the market. While it doesn't necessarily signal negative company performance, it can sometimes be interpreted by investors as a lack of strong conviction in future stock price appreciation, especially if the company operates in a volatile or competitive sector like gaming or digital media.

Comparison to Industry Standards

• Insider selling under a 10b5-1 plan is a standard practice for executives and directors to manage their personal finances and diversify holdings while avoiding accusations of trading on material non-public information.
• The volume of shares sold (62,828 shares) represents a small fraction of Mike Zoi's total beneficial ownership (1,417,557 shares remaining), which is typical for planned diversification rather than a complete divestment.
• Compared to other gaming or digital entertainment companies, insider transactions are routinely reported, and the market generally assesses the context (e.g., size of sale, reason, remaining holdings) rather than just the fact of a sale.

Related Party Transactions

• The transactions involve Mike Zoi, a director and 10% owner, selling shares indirectly owned through Driven Lifestyle Group LLC, which he manages. This constitutes a related party transaction.

Stakeholder Impact

• Shareholders may interpret the insider selling as a negative signal, potentially leading to downward pressure on the stock price.

Key Dates

Recommendation

While the insider selling by a director and 10% owner is a negative signal, the transactions were conducted under a pre-arranged 10b5-1 plan, which suggests a planned diversification rather than an immediate reaction to adverse news. The remaining beneficial ownership is still substantial. Investors should monitor future insider activity and company performance, but a 'hold' recommendation is appropriate given the context of planned sales versus a more urgent divestment.

Keywords

Motorsport Games, MSGM, Insider Selling, Form 4, Mike Zoi, Share Sale, Director, 10b5-1 Plan, Equity Transaction, Beneficial Ownership