Form 4: Tempus AI CEO Eric Lefkofsky Executes Stock Sales Under 10b5-1 Plan

Tempus AI CEO Eric Lefkofsky sold a significant number of Class A Common Stock shares through a pre-arranged 10b5-1 trading plan.

Summary

• Eric Lefkofsky, CEO and Chairman of Tempus AI, executed multiple sales of Class A Common Stock on December 18, 2024.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on June 14, 2024.
• The sales were executed at various weighted average prices, ranging from $37.34 to $39.38 per share.
• The shares were sold both directly and indirectly through entities controlled by Mr. Lefkofsky, including Gray Media, LLC and Blue Media, LLC.
• The total number of shares sold directly was 166,459.
• The total number of shares sold indirectly was 26,610,319 by Blue Media, LLC and 9,565,090 by Gray Media, LLC.
• The transactions also included a transfer of shares between two entities controlled by Mr. Lefkofsky, resulting in a change in the form of beneficial ownership.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing stock sales by an executive under a pre-arranged plan. It doesn't inherently indicate positive or negative sentiment, but the market may react to the volume of shares sold.

Risks

• The sales by the CEO could be perceived negatively by the market, potentially impacting investor confidence.
• Large volume sales by insiders can sometimes lead to short-term price volatility.

Industry Context

Insider trading activity is a common occurrence in publicly traded companies, and these transactions are closely monitored by regulators and investors. The use of 10b5-1 plans is a legal way for insiders to sell shares while avoiding accusations of trading on non-public information.

Comparison to Industry Standards

• The use of 10b5-1 trading plans is a standard practice among executives of publicly traded companies, such as those in the biotechnology and healthcare technology sectors, to manage their personal finances while complying with insider trading regulations.
• Similar filings are regularly seen from executives at companies like Illumina, Inc. and Exact Sciences Corp, which are also in the healthcare technology space.

Stakeholder Impact

• Shareholders may react to the news of the CEO selling shares, potentially leading to short-term price fluctuations.
• The sales do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Tempus AI, Eric Lefkofsky, insider trading, Form 4, stock sale, 10b5-1 plan, Class A Common Stock, beneficial ownership