Form 4: Huntington Ingalls Director Augustus L. Collins Defers Shares into Stock Unit Account

Sentiment:

Insider Transaction Report


Huntington Ingalls Industries, Inc. Director Augustus L. Collins acquired 167 shares of common stock through a deferral into a stock unit account at a price of $246.31 per share, increasing his beneficial ownership to 10,305.13 shares.

Summary

  • Director Augustus L. Collins acquired 167 shares of Huntington Ingalls Industries, Inc. common stock.
  • The transaction occurred on July 1, 2025, with shares priced at $246.31 each.
  • These shares were deferred into a stock unit account under the company's 2022 Long-Term Incentive Stock Plan.
  • Following this transaction, Mr. Collins beneficially owns 10,305.13 shares of common stock.
  • The transaction is exempt under Rule 16b-3.

Sentiment

Score: 7

Explanation: The transaction is a routine compensation event for a director, indicating continued alignment with company performance. While not a direct open-market purchase, it reflects ongoing commitment and participation in the company's long-term incentive plan, which is generally viewed positively for corporate governance and insider alignment.

Positives

  • The acquisition of shares by a director, even through a deferral plan, generally indicates continued alignment of interests between management and shareholders.
  • Participation in the 2022 Long-Term Incentive Stock Plan suggests a commitment to long-term performance and retention of key personnel.

Negatives

  • No direct negatives are apparent from this specific Form 4 filing, as it reports a standard compensation-related transaction.

Risks

  • No specific risks are detailed in this Form 4 filing, which primarily reports an insider transaction.

Future Outlook

The document does not contain forward-looking statements or guidance, as it is a factual report of a past insider transaction.

Industry Context

This Form 4 filing reports a routine insider transaction related to director compensation, which is a common practice across all industries to align executive interests with shareholder value. It does not provide broader industry trends or competitive insights.

Comparison to Industry Standards

  • This transaction, involving the deferral of common stock into a stock unit account under a long-term incentive plan, is a standard practice for executive and director compensation across publicly traded companies.
  • Companies like Lockheed Martin (LMT), General Dynamics (GD), and Northrop Grumman (NOC), which operate in similar defense and aerospace sectors, also utilize similar equity-based compensation plans to incentivize and retain key personnel.
  • The specific value and number of shares are commensurate with compensation structures for directors at companies of similar market capitalization and industry.

Corporate Governance

Change TypeDescriptionEffective DateImpact Assessment
Compensation Plan UtilizationShares of common stock were deferred into a stock unit account pursuant to the Huntington Ingalls Industries, Inc. 2022 Long-Term Incentive Stock Plan, indicating the ongoing use of this plan for director compensation.07/01/2025Reinforces alignment of director interests with long-term shareholder value through equity-based compensation.

Related Party Transactions

  • Director Augustus L. Collins acquired 167 shares of common stock through a deferral into a stock unit account, which is a transaction between an insider (related party) and the company as part of a compensation plan.

Stakeholder Impact

  • Shareholders: The transaction aligns the director's interests with shareholders through equity ownership, potentially fostering long-term value creation.
  • Employees: No direct impact on employees is indicated by this specific filing.
  • Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this specific filing.

Next Steps

  • The document does not mention any specific future actions, events, or milestones related to this transaction.

Key Dates

DateDescription
07/01/2025Date of transaction where 167 shares of common stock were acquired.
07/02/2025Date the Form 4 was signed by the attorney-in-fact.

Recommendation

hold

Keywords

Huntington Ingalls Industries, HII, SEC Form 4, Insider Trading, Stock Unit Account, Director Compensation, Equity Compensation, Augustus L. Collins, Common Stock

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