Form 4: Tempus AI COO Sells Shares to Cover Tax Obligations

Tempus AI's Chief Operating Officer, Ryan Fukushima, sold 3,500 shares of Class A Common Stock to cover tax obligations related to vesting restricted stock units.

Summary

• Ryan Fukushima, the Chief Operating Officer of Tempus AI, sold 3,500 shares of Class A Common Stock on December 16, 2024.
• The sale was executed at a weighted average price of $40.23 per share, with individual transactions ranging from $40.00 to $40.56.
• This transaction was not a discretionary sale but rather a 'sell to cover' transaction mandated by the company to satisfy tax withholding obligations.
• Following the transaction, Mr. Fukushima directly owns 1,003,707 shares of Class A Common Stock.
• He also indirectly owns 131,893 shares through the Ryan Fukushima Irrevocable Family Trust and 150,000 shares through his spouse.

Sentiment

Score: 6

Explanation: The document reflects a routine transaction related to executive compensation and tax obligations. It is neither particularly positive nor negative for the company's outlook.

Positives

• The sale was a mandated 'sell to cover' transaction, not a discretionary sale, which suggests no change in the executive's confidence in the company.

Risks

• While not a discretionary sale, large sales by insiders can sometimes be perceived negatively by the market.

Industry Context

This is a routine transaction related to executive compensation and tax obligations, common in publicly traded companies. It does not indicate any significant change in the company's operations or outlook.

Comparison to Industry Standards

• Similar 'sell to cover' transactions are common among executives at publicly traded companies, particularly when restricted stock units vest.
• The price range of $40.00 to $40.56 is within the expected range for a stock sale of this type.

Stakeholder Impact

• The transaction has a minimal impact on shareholders as it is a routine sale to cover tax obligations.

Key Dates

Keywords

Tempus AI, Ryan Fukushima, insider trading, Form 4, stock sale, tax obligations, Class A Common Stock, executive compensation