Form 4: Rush Street Interactive CEO Richard Schwartz Executes Stock Transactions
SEC Form 4 Filing
Rush Street Interactive CEO Richard Schwartz converted partnership units to Class A common stock and sold shares under a pre-arranged 10b5-1 plan.
Summary
- Richard Schwartz, CEO of Rush Street Interactive, converted 193,905 Class A Common Stock Units into an equal number of Class A Common Stock shares on December 6, 2024.
- This conversion also resulted in the cancellation of 193,905 Class V Voting Stock shares held by Mr. Schwartz.
- On December 9 and 10, 2024, Mr. Schwartz sold a total of 193,905 Class A Common Stock shares at weighted average prices of $13.5071 and $13.5669 respectively.
- These sales were executed under a pre-arranged 10b5-1 trading plan established on August 16, 2024.
- Following these transactions, Mr. Schwartz directly owns 1,613,578 shares of Class A Common Stock and 5,740,017 shares of Class V Voting Stock.
Sentiment
Score: 5
Explanation: The document reflects routine insider transactions under a pre-arranged plan, with no indication of positive or negative sentiment.
Industry Context
This filing is a routine disclosure of insider transactions and does not indicate any specific trend in the online gaming industry. It is common for executives to use 10b5-1 plans for pre-planned stock sales.
Comparison to Industry Standards
- The use of 10b5-1 trading plans is a common practice among executives at publicly traded companies, including those in the online gaming sector, such as DraftKings and Penn National Gaming.
- The reported share prices are within the typical trading range for RSI, and the volume of shares sold is not unusual for insider transactions.
- The conversion of partnership units to common stock is a standard mechanism for companies with complex ownership structures.
Stakeholder Impact
- The stock sales by the CEO may have a minor impact on the stock price, but the transactions were pre-planned and are not expected to cause significant volatility.
- The conversion of partnership units to common stock is a standard procedure and does not have a direct impact on stakeholders.
Key Dates
| Date | Description |
|---|---|
| 06/29/2021 | Date from which RSI Units could be exchanged for Class A Common Stock, subject to conditions. |
| 08/16/2024 | Date the 10b5-1 trading plan was established. |
| 12/06/2024 | Date of the conversion of Class A Common Stock Units to Class A Common Stock and cancellation of Class V Voting Stock. |
| 12/09/2024 | Date of the first sale of Class A Common Stock. |
| 12/10/2024 | Date of the second sale of Class A Common Stock and filing date of the Form 4. |
Keywords
insider trading, stock sale, form 4, RSI, Richard Schwartz, 10b5-1 plan, Class A Common Stock, Class V Voting Stock, Rush Street Interactive
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