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

An executive at Tempus AI, Erik Phelps, sold 2,396 shares of Class A Common Stock to cover tax obligations related to vesting restricted stock units.

Summary

• Erik Phelps, an EVP & Chief Admin & Legal Officer at Tempus AI, sold 2,396 shares of Class A Common Stock on December 16, 2024.
• The sale was executed to cover statutory tax withholding obligations associated with the vesting of restricted stock units.
• The shares were sold at a weighted average price of $40.23, with individual transactions ranging from $40.00 to $40.56.
• Following the transaction, Phelps beneficially owns 220,596 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction for an executive to cover tax obligations. It is not indicative of any positive or negative sentiment towards the company's performance or future prospects. The transaction is expected and does not suggest any significant change in the executive's confidence in the company.

Industry Context

This is a routine transaction for executives who receive stock-based compensation. It is common for executives to sell shares to cover tax obligations when restricted stock units vest.

Comparison to Industry Standards

• Executive stock sales to cover tax obligations are a common practice across publicly traded companies.
• The sale of 2,396 shares is relatively small compared to the total holdings of 220,596 shares, suggesting this is a routine transaction rather than a significant divestment.
• Similar transactions are regularly reported by executives at other companies in the technology and healthcare sectors.

Stakeholder Impact

• The transaction has a minimal impact on shareholders as it is a routine sale to cover tax obligations.
• The sale does not indicate any change in the executive's confidence in the company.

Key Dates

Keywords

Tempus AI, insider trading, stock sale, executive, tax obligations, restricted stock units, Class A Common Stock