Form 4: Huntington Ingalls Industries Executive Edgar A. Green III Reports Stock Transactions

Executive Vice President Edgar A. Green III reports acquisition and disposal of Huntington Ingalls Industries (HII) common stock related to restricted stock rights.

Summary

• On February 24, 2025, Edgar A. Green III, an Executive Vice President at Huntington Ingalls Industries (HII), reported transactions involving HII common stock.
• Green acquired 6,522 shares of common stock at $168.81 per share upon settlement of restricted performance stock rights (RPSRs) for the performance period that ended on December 31, 2024.
• He also disposed of 2,965.6 shares at $168.81 per share to cover withholding taxes on the RPSRs.
• Following these transactions, Green directly owns 11,033.851 shares and indirectly owns 2,043.74 shares through a 401(k) plan.
• Additionally, Green acquired 2,665 restricted stock rights (RSRs) which vest ratably over three years.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions are part of a standard executive compensation plan, and the acquisition of shares suggests confidence in the company's future performance.

Positives

• The acquisition of 6,522 shares indicates a potential positive outlook by the executive on the company's performance.
• The granting of 2,665 restricted stock rights suggests continued alignment of executive compensation with company performance.

Negatives

• The disposal of 2,965.6 shares to cover withholding taxes, while standard, reduces the executive's overall holdings.

Risks

• The value of the restricted stock rights is contingent on the future performance of the company's stock.
• Changes in tax laws could impact the value of stock-based compensation.

Future Outlook

The restricted stock rights vest ratably over three years, indicating a long-term incentive structure for the executive.

Industry Context

Executive stock transactions are common in publicly traded companies and are often tied to performance-based compensation plans. This filing provides transparency into the executive's holdings and incentives.

Comparison to Industry Standards

• Executive compensation packages at companies like General Dynamics (GD) and Lockheed Martin (LMT) also include restricted stock units and performance-based incentives.
• The vesting schedules and performance metrics associated with these grants are typically aligned with long-term shareholder value creation.

Stakeholder Impact

• The transactions provide transparency to shareholders regarding executive compensation and alignment with company performance.
• The vesting of restricted stock rights incentivizes the executive to focus on long-term value creation.

Key Dates