Form 4: SoundHound AI COO Sells Shares to Cover Tax Obligations
SEC Form 4
Michael Zagorsek, COO of SoundHound AI, sold 42,001 shares of Class A Common Stock on September 20, 2024, to satisfy tax withholding obligations related to vesting restricted stock units.
Summary
- Michael Zagorsek, the Chief Operating Officer of SoundHound AI, Inc. (SOUN), reported a transaction involving the sale of company stock.
- On September 20, 2024, Zagorsek sold 42,001 shares of Class A Common Stock at a price of $4.8795 per share.
- The sale was executed to cover tax withholding obligations associated with the vesting of restricted stock units.
- Following the transaction, Zagorsek directly owns 1,473,322 shares of SoundHound AI, Inc.
- The reporting was filed on September 24, 2024.
Sentiment
Score: 5
Explanation: The sentiment is neutral as the transaction is a routine sale of shares to cover tax obligations, which is a common practice among executives.
Industry Context
Insider sales are a common occurrence, especially when related to covering tax obligations on vested equity. The market typically views these sales in the context of the overall holdings of the individual and the company's performance.
Stakeholder Impact
- The sale could have a minor impact on shareholders due to the increased supply of shares, but it is unlikely to be significant given the relatively small number of shares sold compared to the total outstanding.
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Date of Limited Power of Attorney for Reporting under Section 16(a) of the Securities Exchange Act of 1934 |
| 2022-08-04 | Date of restricted stock units granted to the reporting person. |
| 2022-09-07 | Date of restricted stock units granted to the reporting person. |
| 2023-08-03 | Date of restricted stock units granted to the reporting person. |
| 2024-08-01 | Date of restricted stock units granted to the reporting person. |
| 2024-09-20 | Date of transaction: Sale of 42,001 shares of Class A Common Stock. |
| 2024-09-24 | Date of Form 4 filing. |
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