Form 4: HII Executive Edgar Green III Reports Stock Transactions

Huntington Ingalls Industries executive Edgar A. Green III reported the acquisition of common stock from restricted performance stock rights and subsequent tax-related dispositions.

Summary

• Edgar A. Green III, Executive Vice President and President of HII Mission Technologies, reported transactions involving Huntington Ingalls Industries, Inc. common stock.
• On February 25, 2026, Green acquired 6,470 shares of common stock at a price of $435.58 per share, issued upon the settlement of restricted performance stock rights (RPSRs) for the performance period that concluded on December 31, 2025.
• Concurrently, 2,713.529 shares were disposed of at $435.58 per share to cover withholding taxes related to the RPSR settlement.
• Following these transactions, Green directly beneficially owns 11,430.207 shares of common stock and indirectly owns 2,080.48 shares through a 401(k) Plan.
• Green also acquired 1,033 Restricted Stock Rights (RSRs) on February 25, 2026, under the 2022 Long-Term Incentive Stock Plan.
• These RSRs represent a contingent right to receive an equivalent number of common shares (or cash/combination) and will vest ratably in three equal installments on the first, second, and third anniversaries of the grant date.
• Green's interest in the HII Stock Fund of the Savings Excess Plan is held in units, representing 2,166.62 shares, with a total beneficial ownership of 9,356.524 units.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting routine executive compensation and alignment of interests through equity awards, with no immediate negative implications beyond standard tax withholding.

Positives

• Executive Edgar A. Green III received 6,470 shares of common stock from the settlement of restricted performance stock rights, indicating successful performance over the prior period.
• The grant of an additional 1,033 Restricted Stock Rights (RSRs) aligns executive incentives with long-term company performance and shareholder value.

Negatives

• 2,713.529 shares were disposed of to cover withholding taxes, which is a standard practice but reduces the immediate net share gain from the RPSR settlement.

Industry Context

StockSavvy.ai notes that executive equity awards and their subsequent reporting via Form 4 filings are standard practice across publicly traded companies, particularly in the defense and industrial sectors. These filings provide transparency into insider ownership and compensation structures, which are key considerations for investors evaluating corporate governance and management alignment with shareholder interests.

Corporate Governance

Related Party Transactions

• Acquisition of 6,470 shares of common stock by Edgar A. Green III, an executive officer, from the issuer upon settlement of restricted performance stock rights.
• Disposition of 2,713.529 shares of common stock by Edgar A. Green III to the issuer for payment of withholding taxes on restricted performance stock rights.
• Grant of 1,033 Restricted Stock Rights (RSRs) to Edgar A. Green III by the issuer under the 2022 Long-Term Incentive Stock Plan.

Stakeholder Impact

• Shareholders: The filing provides transparency regarding executive compensation and insider ownership, which can influence investor confidence and perception of management alignment. The grant of new RSRs ties executive incentives to future company performance.
• Employees: The use of equity compensation plans like the LTISP can signal the company's approach to rewarding and retaining key personnel, potentially impacting overall employee morale and retention strategies.

Next Steps

• The newly granted Restricted Stock Rights (RSRs) will vest ratably in three equal installments on the first, second, and third anniversaries of the grant date (February 25, 2026).

Key Dates

Recommendation

This Form 4 filing details routine executive compensation transactions, including the settlement of performance-based awards and the grant of new long-term incentives. While it demonstrates ongoing alignment between executive interests and company performance, it does not present new information that would fundamentally alter the investment thesis for Huntington Ingalls Industries. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals rather than this specific insider report.

Keywords

Huntington Ingalls Industries, HII, Form 4, Insider Transaction, Restricted Stock Rights, RPSRs, Executive Compensation, Stock Grant, Equity Award, Edgar A. Green III, HII Mission Technologies