Form 4: Elevance Health Exec Reports Routine Stock Transactions

Sentiment:

Insider Transaction Report 4 March 2026 4:58 PM

Elevance Health's EVP & Chief Digital Info Officer, Ratnakar Lavu, reported recent acquisitions of restricted stock units and stock options, alongside sales to cover tax liabilities.

Summary

Ratnakar Lavu, EVP & Chief Digital Info Officer of Elevance Health, Inc. (ELV), reported changes in beneficial ownership.
On March 2, 2026, Lavu disposed of 315 shares of Common Stock at $294.07 per share to cover tax liabilities related to vesting restricted stock.
On March 2, 2026, Lavu acquired 5,101 restricted share units (Common Stock) at $0, with restrictions lapsing in installments on March 2, 2027, March 2, 2028, and March 2, 2029.
On March 2, 2026, Lavu acquired 6,802 restricted share units (Common Stock) at $0, with restrictions lapsing in installments on March 2, 2027, and March 2, 2028.
On March 3, 2026, Lavu disposed of 222 shares of Common Stock at $284.03 per share to cover tax liabilities related to vesting restricted stock.
On March 2, 2026, Lavu acquired 20,152 Employee Stock Options (right to buy) with an exercise price of $294.07, expiring on March 2, 2036.
The options are exercisable in three installments (two of 6,717 shares and one of 6,718 shares) beginning on March 2, 2027.
Following these transactions, Lavu beneficially owns 16,149 shares of Common Stock directly and 20,152 derivative securities (options).

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as neutral to slightly positive. It primarily details routine executive compensation and tax-related transactions, which are expected and indicate continued alignment of management with shareholder interests through equity incentives.

Positives

Acquisition of 11,903 restricted share units (RSUs) at $0, representing future equity compensation and alignment with shareholder interests.
Grant of 20,152 employee stock options, providing long-term incentive and potential for future gains based on company performance.

Negatives

Disposal of 537 shares of Common Stock (315 shares at $294.07 and 222 shares at $284.03) to satisfy tax withholding obligations, which is a routine reduction in direct holdings.

Future Outlook

The filing indicates future vesting of restricted share units on March 2, 2027, March 2, 2028, and March 2, 2029. Employee stock options granted on March 2, 2026, will become exercisable in installments starting March 2, 2027, and will expire on March 2, 2036.

Industry Context

StockSavvy.ai notes that equity compensation, including restricted stock units and stock options, is a standard practice for executive retention and motivation across the healthcare industry. This structure aligns executive interests with long-term shareholder value by tying a significant portion of compensation to the company's stock performance.

Comparison to Industry Standards

Equity compensation packages, comprising a mix of restricted stock and options with multi-year vesting schedules, are common across large-cap healthcare companies.
Comparable companies such as UnitedHealth Group (UNH) and Cigna (CI) frequently utilize similar structures to incentivize their senior executives, ensuring their compensation is directly linked to the company's sustained growth and stock performance.
The vesting schedule for RSUs and the exercisability period for options are typical for executive compensation plans in the sector, designed to encourage long-term commitment and performance.

Stakeholder Impact

Shareholders: The grant of equity compensation aligns the executive's financial interests with the long-term performance of Elevance Health, potentially benefiting shareholders through motivated leadership.
Employees (Ratnakar Lavu): Receives significant equity compensation, providing a substantial incentive for continued performance and retention.

Next Steps

Vesting of 1,700 shares of restricted stock units on March 2, 2027.
Vesting of 3,401 shares of restricted stock units on March 2, 2027.
Employee stock options become exercisable in installments starting March 2, 2027.
Vesting of 1,700 shares of restricted stock units on March 2, 2028.
Vesting of 3,401 shares of restricted stock units on March 2, 2028.
Vesting of 1,701 shares of restricted stock units on March 2, 2029.
Expiration of employee stock options on March 2, 2036.

Key Dates

Date	Description
03/02/2026	Date of earliest transaction for stock dispositions, RSU acquisitions, and option grant.
03/03/2026	Transaction date for additional stock disposition to cover tax liability.
03/04/2026	Signature date of the reporting person's attorney-in-fact.
03/02/2027	First vesting date for restricted share units (1,700 shares from the 5,101 grant and 3,401 shares from the 6,802 grant) and the one-year anniversary for option exercisability.
03/02/2028	Second vesting date for restricted share units (1,700 shares from the 5,101 grant and 3,401 shares from the 6,802 grant).
03/02/2029	Final vesting date for restricted share units (1,701 shares from the 5,101 grant).
03/02/2036	Expiration date for the employee stock options.

Recommendation

hold

This Form 4 filing details routine executive compensation and tax-related stock transactions. It does not provide new fundamental information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transactions are expected and reflect standard practices for incentivizing and compensating senior management.

Keywords

Elevance Health, ELV, Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Stock Options, Equity Compensation

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