L3Harris Technologies (NYSE:LHX), Inc. CEO Christopher E. Kubasik has established a pre-arranged trading plan for exercising stock options and selling shares, the company disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). The plan, set up under Rule 10b5-1, allows for the sale of shares issued upon the exercise of vested options granted in February 2017, which are set to expire in February 2027.
The trading plan comes into effect starting March 2025 and will conclude by March 25, 2025, with sales contingent on meeting minimum price thresholds. Kubasik's current ownership exceeds the company's stock ownership guidelines, and any transactions under this plan will be reported to the SEC through Form 4 and Form 144 filings.
L3Harris Technologies, which operates in the aerospace and defense technology sector, mentioned that Kubasik will not have discretionary control over the sales of the shares once the plan is in motion. This type of plan is often used by corporate executives to sell their shares in a manner that avoids concerns about insider trading, as it is established when the executive does not have any private knowledge of material nonpublic information.
In other recent news, defense contractor L3Harris Technologies secured a significant contract with the U.S. Navy, potentially worth $999 million. The five-year contract involves the provision of advanced communication technology to U.S. and coalition forces. L3Harris has also successfully completed the Safety of Flight qualifications for its Viper Shield electronic warfare suite, designed for F-16 fighter jets. This will be provided to the F-16 fleets of six international partners.
In further developments, L3Harris' Aerojet Rocketdyne segment reported a revenue increase to $598 million in the third quarter, attributed to a significant increase in rocket motor output. Analyst firms BofA Securities, Jefferies, and Truist Securities have shown confidence in the company's growth strategy, upgrading L3Harris' stock and increasing price targets.
InvestingPro Insights
L3Harris Technologies' CEO Christopher E. Kubasik's pre-arranged trading plan aligns with the company's strong market position and financial performance. According to InvestingPro data, L3Harris boasts a substantial market capitalization of $46.59 billion, reflecting its prominence in the aerospace and defense sector. The company's revenue growth of 13.32% over the last twelve months demonstrates its ability to expand in a competitive industry.
InvestingPro Tips highlight L3Harris' commitment to shareholder value, having raised its dividend for 23 consecutive years and maintained payments for 54 years. This consistent dividend policy underscores the company's financial stability and may contribute to investor confidence in Kubasik's leadership.
The company's profitability and growth prospects are further emphasized by InvestingPro Tips indicating that net income is expected to grow this year and that L3Harris has been profitable over the last twelve months. These factors may support the CEO's decision to exercise options and sell shares as part of his personal financial planning.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on L3Harris Technologies. Currently, there are 5 more InvestingPro Tips available for LHX, providing a deeper understanding of the company's financial health and market position.
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