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

Dmitry Melnikov, a director and 10% owner of Semrush Holdings, sold shares of Class A Common Stock between January 2nd and January 6th, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Dmitry Melnikov, a director and 10% owner of Semrush Holdings, sold shares of Class A Common Stock between January 2nd and January 6th, 2025.
• The sales were executed under a Rule 10b5-1 trading plan adopted on March 15, 2024.
• On January 2, 2025, 34,401 shares were sold at a weighted average price of $11.7, with prices ranging from $11.53 to $12.00.
• On January 3, 2025, 35,439 shares were sold at a weighted average price of $11.71, with prices ranging from $11.59 to $11.82.
• On January 6, 2025, 33,705 shares were sold at a weighted average price of $11.86, with prices ranging from $11.64 to $12.03.
• Following these transactions, Melnikov indirectly owns 8,684,764 shares through The Melnikov Family GRAT Remainder Trust.
• Melnikov also indirectly owns shares through Min Choron LLC (5,924,595 shares), The Dmitry Melnikov Grantor Retained Annuity Trust Three (914,033 shares), and The Dmitry Melnikov Grantor Retained Annuity Trust Four (1,644,626 shares).

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document simply reports stock sales under a pre-existing trading plan. There's no indication of positive or negative implications for the company's performance.

Industry Context

Sales by insiders are a common occurrence and are often planned in advance, especially through Rule 10b5-1 plans, to avoid accusations of trading on non-public information. The market typically analyzes the size and frequency of such sales to gauge insider sentiment.

Comparison to Industry Standards

• Rule 10b5-1 trading plans are a common practice among corporate insiders to diversify their holdings and manage personal finances.
• The volume of shares sold is relatively small compared to the total shares outstanding, suggesting it may not have a significant impact on the stock price.
• Comparable companies often see similar insider transactions, especially after lock-up periods expire or as part of regular portfolio management.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders if they perceive it as a lack of confidence by the director, although the existence of a 10b5-1 plan mitigates this concern.
• Employees may be indirectly affected if the stock price is negatively impacted, affecting their stock options or company morale.

Key Dates