Form 4: RSI Executive Sells Shares Under 10b5-1 Plan

Rush Street Interactive CEO Richard Todd Schwartz reports transactions involving Class A Common Stock and Class V Voting Stock, including sales under a 10b5-1 plan.

Summary

• Richard Todd Schwartz, CEO of Rush Street Interactive, Inc. (RSI), reported transactions on July 1, 2026.
• These transactions involved the exchange of Class A Common Stock Units for Class A Common Stock and Class V Voting Stock.
• A total of 47,222 Class A Common Stock units were exchanged for Class A Common Stock and Class V Voting Stock.
• Additionally, 55,556 Class A Common Stock units were exchanged for Class A Common Stock and Class V Voting Stock, with these shares held indirectly by an Irrevocable Trust.
• Another 55,556 Class A Common Stock units were exchanged for Class A Common Stock and Class V Voting Stock, with these shares held indirectly by a Trust.
• Sales of Class A Common Stock occurred under a Rule 10b5-1 trading plan.
• Specifically, 47,222 shares of Class A Common Stock were sold at a weighted average price of $31.2148.
• Another 55,556 shares of Class A Common Stock were sold at a weighted average price of $31.2148, held indirectly by an Irrevocable Trust.
• A further 55,556 shares of Class A Common Stock were sold at a weighted average price of $31.2148, held indirectly by a Trust.
• The Class V Voting Stock provides voting rights but no economic rights.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this filing as neutral to slightly negative due to the significant sale of shares by the CEO, despite being executed under a 10b5-1 plan.

Positives

• The sale of shares was conducted under a pre-established Rule 10b5-1 trading plan, indicating adherence to a structured selling strategy.
• The weighted average sale price of $31.2148 suggests a favorable market execution for the disposed shares.

Negatives

• Significant sale of Class A Common Stock by the CEO, totaling 158,334 shares across direct and indirect holdings.
• The Class V Voting Stock, while providing voting power, carries no economic rights, which could be a point of concern for some investors regarding the structure of executive compensation or holdings.

Risks

• Potential for negative market perception due to the CEO's sale of a substantial number of shares, even if executed under a 10b5-1 plan.
• The weighted average sale price indicates a range of prices from $29.95 to $31.66, suggesting some shares were sold at a lower price than the average.

Future Outlook

No specific forward-looking statements or guidance were provided in this Form 4 filing, which primarily details past transactions.

Management Comments

• The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer, 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 Form 4 filings are standard disclosures for insider transactions. The use of a 10b5-1 plan by a CEO is common practice to diversify holdings or manage personal finances while mitigating insider trading concerns. The exchange of units for stock and voting stock is a typical structure in companies with dual-class share systems or limited partnership structures.

Stakeholder Impact

• Shareholders may interpret the CEO's sale of shares as a signal of reduced confidence in future stock performance, potentially impacting share price.
• Employees holding stock options or grants may be influenced by the CEO's selling activity when considering their own investment decisions.
• Creditors and other stakeholders may view significant insider selling as a potential indicator of financial strain or strategic shifts, though this is less direct.

Next Steps

• The reporting person may continue to execute transactions under the 10b5-1 plan.
• The company may provide further information upon request from the SEC or security holders regarding the sale prices.

Key Dates

Recommendation

The filing details routine insider transactions under a pre-arranged plan, which typically do not warrant a strong buy or sell recommendation. While the sale of a significant number of shares by the CEO could be a minor concern, the execution via a 10b5-1 plan mitigates concerns about opportunistic selling. Investors should monitor the company's overall performance and strategic execution rather than solely focusing on this transaction.

Keywords

Form 4, SEC Filing, Insider Trading, Stock Sale, 10b5-1 Plan, Rush Street Interactive, RSI, Richard Todd Schwartz, Class A Common Stock, Class V Voting Stock, Beneficial Ownership, Executive Compensation