Form 4: SoundHound AI's Chief Product Officer, James Ming Hom, Sells Shares Under 10b5-1 Plan

James Ming Hom, Chief Product Officer of SoundHound AI, sold a total of 1,800,000 shares of Class B Common Stock, which converted to Class A Common Stock, under a pre-arranged 10b5-1 trading plan.

Summary

• James Ming Hom, the Chief Product Officer of SoundHound AI, Inc., executed sales of Class B Common Stock, which automatically converted into Class A Common Stock, on February 26 and 27, 2024.
• These transactions were conducted under a Rule 10b5-1 trading plan adopted in September 2023.
• On February 26, 2024, 900,000 shares were sold at a weighted-average price of $4.6762, with prices ranging from $4.45 to $4.98.
• An additional 400,000 shares were sold on the same day at a weighted-average price of $5.4615, with prices ranging from $5.45 to $5.49.
• On February 27, 2024, 500,000 shares were sold at a weighted-average price of $6.8005, with prices ranging from $6.51 to $7.16.
• Following these transactions, Hom directly owns 2,212,588 shares of Class A Common Stock.
• Each share of Class B Common Stock is convertible into one share of Class A Common Stock at any time.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating stock sales by an executive. The sentiment is neutral as it simply reports transactions under a pre-arranged plan.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, potentially impacting the stock price, although these sales were conducted under a pre-arranged 10b5-1 trading plan.

Industry Context

Executive stock sales are a common occurrence in publicly traded companies. The use of 10b5-1 plans allows insiders to sell shares over a predetermined period, mitigating concerns about insider trading.

Comparison to Industry Standards

• Executive compensation practices, including stock sales, are generally benchmarked against peer companies in the technology sector.
• Companies like Palantir, C3.ai, and UiPath also have executives who utilize 10b5-1 plans for stock transactions.
• The size and frequency of these transactions are often compared to industry averages to assess whether they are within reasonable bounds.

Stakeholder Impact

• The stock sales could have a minor impact on shareholder sentiment, although the existence of a 10b5-1 plan may mitigate concerns.

Key Dates