Form 4: Semrush Director Dmitry Melnikov Sells Shares Under 10b5-1 Plan

Dmitry Melnikov, a director at Semrush Holdings, sold a total of 80,016 Class A common stock shares through a pre-arranged 10b5-1 trading plan.

Summary

• Dmitry Melnikov, a director at Semrush Holdings, executed sales of Class A common stock.
• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on March 15, 2024.
• On December 13, 2024, 42,226 shares were sold at a weighted average price of $13.5, with individual prices ranging from $13.28 to $13.95.
• On December 16, 2024, 38,790 shares were sold at a weighted average price of $13.42, with individual prices ranging from $13.20 to $13.51.
• Following these transactions, Melnikov's indirect holdings through The Melnikov Family GRAT Remainder Trust decreased to 9,060,301 shares.
• Melnikov also has indirect holdings through other entities including Min Choron LLC, The Dmitry Melnikov Grantor Retained Annuity Trust Three, and The Dmitry Melnikov Grantor Retained Annuity Trust Four.
• Melnikov disclaims beneficial ownership of these shares except to the extent of his pecuniary interest.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing detailing stock sales by a director under a pre-arranged plan. It does not contain any information that would be considered significantly positive or negative.

Risks

• The sales by a director could be perceived negatively by the market, potentially impacting the stock price.
• The use of a 10b5-1 plan suggests pre-determined sales, which could indicate a lack of confidence in the company's future performance by the director, although this is not necessarily the case.

Industry Context

This is a routine filing related to insider trading activity. It is common for executives and directors to use 10b5-1 plans to manage their stock sales, and this activity is not necessarily indicative of the company's performance or outlook.

Comparison to Industry Standards

• The use of 10b5-1 trading plans is a common practice among executives and directors of publicly traded companies, such as those in the technology sector like Semrush.
• Similar filings are regularly seen from companies like HubSpot, Salesforce, and Adobe, where executives use these plans to manage their stock sales in a compliant manner.
• The reported prices are within the typical trading range for Semrush stock, and the volume of shares sold is not unusually high for a director's transactions.

Stakeholder Impact

• The stock sales by a director could potentially cause a slight negative reaction from shareholders, although the use of a 10b5-1 plan mitigates this concern.

Key Dates

Keywords

Semrush, Dmitry Melnikov, insider trading, Form 4, 10b5-1 plan, stock sale, Class A Common Stock, beneficial ownership