Form 4: Kratos Defense & Security Solutions Executive Phillip D. Carrai Reports Stock Transactions
SEC Form 4
Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, reported multiple transactions involving the acquisition and disposal of company stock and restricted stock units.
Summary
- Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, filed a Form 4 detailing several transactions.
- On January 3, 2025, and January 4, 2025, Carrai acquired 50,000 shares of common stock through the vesting of restricted stock units (RSUs).
- On the same dates, Carrai disposed of shares to cover tax liabilities related to the vesting of RSUs, with prices at $27.48 per share.
- The transactions resulted in a net increase in Carrai's direct holdings of common stock, with a final total of 289,181 shares directly held.
- Carrai also holds 46,644 shares indirectly through a trust.
- The report also details the vesting of RSUs granted in previous years, with 10,000 RSUs vesting on each of the first five anniversaries of the grant date.
Sentiment
Score: 7
Explanation: The document reflects routine executive stock transactions, which are neither particularly positive nor negative. The sentiment is neutral to slightly positive due to the increase in direct holdings.
Positives
- The vesting of RSUs indicates that Carrai is meeting the conditions of his compensation package.
- The increase in direct holdings of common stock suggests a continued alignment of interests between the executive and the company's shareholders.
Negatives
- The disposal of shares to cover tax liabilities, while standard, does reduce the overall increase in Carrai's holdings.
Risks
- The transactions are routine and do not indicate any specific risks.
- The report does not suggest any potential issues with the company's performance or outlook.
Industry Context
This is a routine filing related to executive compensation and does not indicate any specific trends or competitive issues within the defense and security industry.
Comparison to Industry Standards
- Executive stock transactions are common across publicly traded companies, particularly in the technology and defense sectors.
- The vesting schedules and tax withholding practices are consistent with standard industry practices.
- Companies like Lockheed Martin, Northrop Grumman, and Raytheon also have similar executive compensation structures involving RSUs and stock options.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect routine executive compensation practices.
- The transactions do not have a significant impact on employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 01/03/2020 | Date of grant for 50,000 RSUs that vest ratably over five years. |
| 01/04/2021 | Date of grant for 50,000 RSUs that vest ratably over five years. |
| 01/03/2022 | Date of grant for 50,000 RSUs that vest ratably over five years. |
| 01/03/2023 | Date of grant for 50,000 RSUs that vest ratably over five years. |
| 01/04/2024 | Date of grant for 50,000 RSUs that vest ratably over five years. |
| 01/03/2025 | Date of multiple stock transactions including RSU vesting and share disposals. |
| 01/04/2025 | Date of multiple stock transactions including RSU vesting and share disposals. |
| 01/07/2025 | Date the Form 4 was signed. |
Keywords
Kratos, KTOS, Phillip Carrai, Stock Transactions, Restricted Stock Units, Form 4, Insider Trading, Executive Compensation
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