Form 4: ALSN CEO Graziosi Boosts Common Stock Holdings

Allison Transmission Holdings Inc. CEO David S. Graziosi increased his direct beneficial ownership of common stock by 14,191 shares through RSU and DER settlements, after tax withholding.

Summary

• David S. Graziosi, Chair, President and CEO of Allison Transmission Holdings Inc. (ALSN), reported changes in his beneficial ownership of company securities.
• On February 22, 2026, Graziosi acquired 10,474 shares of ALSN common stock from the settlement of Restricted Stock Units (RSUs) granted on February 22, 2024. Following this transaction, 10,474 derivative Restricted Stock Units related to this grant remain beneficially owned.
• He also acquired 240 shares of ALSN common stock from the settlement of Dividend Equivalent Rights (DERs). Following this transaction, 937 derivative Dividend Equivalent Rights remain beneficially owned.
• An additional 13,418 shares of ALSN common stock were acquired from the settlement of RSUs granted on February 22, 2023. Following this transaction, 0 derivative Restricted Stock Units related to this grant remain beneficially owned.
• Further, 561 shares of ALSN common stock were acquired from the settlement of DERs. Following this transaction, 376 derivative Dividend Equivalent Rights remain beneficially owned.
• To satisfy tax withholding obligations on the vesting of RSUs and DERs, 10,502 shares of common stock were disposed of at a price of $118.85 per share.
• Following these transactions, Graziosi's direct beneficial ownership of common stock stands at 260,663 shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, reflecting the CEO's continued equity accumulation through compensation, which generally aligns management interests with shareholders, despite the routine tax-related share disposition.

Positives

• Increased direct beneficial ownership of common stock by the CEO, indicating continued alignment with shareholder interests.
• The vesting and settlement of RSUs and DERs represent the realization of long-term incentive compensation for the CEO.

Negatives

• A portion of the acquired shares (10,502 shares) was sold to cover tax withholding obligations, which is a common practice but reduces the net increase in direct ownership.

Industry Context

StockSavvy.ai notes that insider transaction filings like this Form 4 are routine disclosures for executive compensation. While not directly indicative of operational performance, the increase in CEO's direct stock ownership aligns with common practices aimed at incentivizing long-term value creation within the automotive and heavy-duty transmission manufacturing sector.

Comparison to Industry Standards

• Form 4 filings are standard regulatory disclosures for insider transactions across all industries. The settlement of RSUs and DERs, along with subsequent tax withholding, is a common mechanism for executive equity compensation, comparable to practices at companies like Cummins Inc. (CMI) or PACCAR Inc (PCAR) in the heavy-duty vehicle component sector. The specific number of shares and the price are company-specific but the mechanism is standard.

Related Party Transactions

• Settlement of Restricted Stock Units and Dividend Equivalent Rights for the CEO, which are part of his compensation package from Allison Transmission Holdings Inc.

Stakeholder Impact

• **Shareholders**: The CEO's increased direct ownership of common stock may be viewed positively as it aligns his interests with long-term shareholder value. The tax withholding sale is a standard event and not indicative of a lack of confidence.
• **Employees**: No direct impact on general employees is indicated by this filing, as it pertains to executive compensation.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation events, specifically the vesting and settlement of RSUs and DERs, and subsequent tax withholding. While the CEO's net increase in common stock ownership is a minor positive for aligning management and shareholder interests, these transactions are expected and do not provide new fundamental information to warrant a change in investment recommendation. The filing does not contain any information that would significantly alter the investment thesis for Allison Transmission Holdings Inc., thus a 'hold' recommendation remains appropriate based solely on this disclosure.

Keywords

Allison Transmission Holdings Inc, ALSN, David S. Graziosi, Form 4, Insider Trading, Beneficial Ownership, Restricted Stock Units, RSU, Dividend Equivalent Rights, DER, Executive Compensation, Stock Settlement, Tax Withholding