Form 4: Sprinklr Director and 10% Owner Roger H. Lee Sells Over 285,000 Shares

Roger H. Lee, a Director and 10% owner of Sprinklr, Inc., reported the sale of 285,439 shares of Class A Common Stock for approximately $2.48 million.

Summary

• Roger H. Lee, identified as a Director and 10% owner of Sprinklr, Inc. (CXM), executed a sale of 285,439 shares of the company's Class A Common Stock.
• The transaction occurred on June 6, 2025, with the shares sold at a weighted average price of $8.68, within a price range of $8.58 to $8.77 per share.
• The total proceeds from this sale amount to approximately $2,477,999.62.
• Following this specific transaction, Roger H. Lee's direct beneficial ownership from this reported sale is 0 shares.
• Mr. Lee retains significant indirect beneficial ownership through various Battery Ventures entities, including 11,570,734 shares via Battery Ventures IX, L.P., 112,687 shares via Battery Investment Partners IX, LLC, 215,670 shares via Battery Investment Partners Select Fund I, L.P., and 2,180,664 shares via Battery Ventures Select Fund I, L.P.
• The filing also noted changes in the form of ownership for 81,869 shares held by The Lee Family Trust and 229,360 shares held jointly with his spouse, which were exempt from reporting as new transactions under Rule 16a-13.

Sentiment

Score: 3

Explanation: The sale of a substantial number of shares by a director and 10% owner typically generates negative sentiment as it can be interpreted as a lack of confidence in the company's future prospects. While the individual's reasons are unknown, the market often views such actions unfavorably.

Negatives

• A significant sale of 285,439 shares by a Director and 10% owner could be interpreted by the market as a signal of reduced confidence in the company's near-term prospects or valuation.
• The sale occurred at a weighted average price of $8.68, which may be below previous highs, indicating the insider chose to liquidate a portion of their holdings at this level.

Risks

• Potential negative market reaction to insider selling, which could put downward pressure on Sprinklr's stock price.
• Perception of reduced insider alignment with shareholder interests due to the sale of a substantial number of shares.

Future Outlook

NA

Industry Context

Insider sales, particularly by directors and significant shareholders, are closely watched in the market as they can sometimes signal a lack of confidence or a strategic portfolio rebalancing. For a software company like Sprinklr, such a sale might prompt investors to scrutinize upcoming financial results or strategic announcements more closely.

Comparison to Industry Standards

• While specific comparable companies or projects are not detailed in a Form 4, insider selling is a common occurrence across all industries.
• However, a sale of this magnitude by a director and 10% owner of a technology company like Sprinklr (CXM) is notable.
• Investors often compare such sales to the overall insider activity within the software or SaaS sector to gauge broader sentiment. For instance, if other directors or executives at Sprinklr or similar customer experience management (CXM) software companies like Salesforce (CRM) or Adobe (ADBE) were also selling, it might indicate a sector-wide concern.
• Conversely, if this is an isolated event, it might be attributed to personal financial planning rather than a negative outlook on the company's fundamentals.

Related Party Transactions

• The document details indirect beneficial ownership through various Battery Ventures entities where the Reporting Person is a managing member, and also shares held by family trusts and jointly with a spouse. While these are related parties, the reported transaction itself is a sale of directly held shares, and the indirect holdings are disclosures of existing relationships rather than new transactions with related parties.

Stakeholder Impact

• Shareholders: May react negatively to the insider sale, potentially leading to a decrease in share price due to concerns about management's confidence or future performance. Existing shareholders might question their investment thesis.
• Employees: No direct impact mentioned, but a significant insider sale could subtly affect employee morale if interpreted as a negative signal about the company's future.

Key Dates

Recommendation

Keywords

Sprinklr, CXM, SEC Form 4, Insider Sale, Roger H. Lee, Director, 10% Owner, Stock Transaction, Beneficial Ownership, Battery Ventures