Form 4: L3Harris CEO Sells 83,000 Shares Under 10b5-1 Plan

L3Harris Technologies' Chair and CEO, Christopher E. Kubasik, sold 83,000 shares of common stock for approximately $279.9 per share after exercising stock options.

Summary

• Christopher E. Kubasik, Chair and CEO, and a Director of L3HARRIS TECHNOLOGIES, INC. (LHX), reported a change in beneficial ownership.
• The transaction, dated September 12, 2025, was executed pursuant to a Rule 10b5-1(c) plan.
• Kubasik exercised 83,000 non-qualified stock options with an exercise price of $162.3 per share.
• Concurrently, 83,000 shares of common stock, acquired from the option exercise, were sold at a weighted average price of $279.9 per share.
• The sale price ranged from $278.30 to $281.62 per share.
• Following these transactions, Kubasik directly owns 145,577.82 shares of common stock.
• Additionally, 30,000 shares of common stock are indirectly owned by a grantor retained annuity trust.
• Kubasik retains 14,171 non-qualified stock options.

Sentiment

Score: 5

Explanation: The transaction is a routine insider sale under a pre-arranged 10b5-1 plan, which is common for executives to manage their equity holdings and diversify. It's not inherently positive or negative for the company's operational performance or fundamental outlook.

Positives

• The executive realized significant value from stock options, with a gross profit of approximately $9.76 million from the exercise and sale.
• The transaction was conducted under a Rule 10b5-1 plan, which indicates a pre-scheduled sale and mitigates concerns about opportunistic insider trading.

Negatives

• The direct beneficial ownership of common stock by the CEO decreased by 83,000 shares following the sale.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

Insider transactions, such as the exercise of stock options and subsequent sale of shares, are common across all industries for executives to manage their personal finances and diversify their holdings. The use of a Rule 10b5-1 plan is a standard practice to ensure compliance with insider trading regulations.

Corporate Governance

Stakeholder Impact

• Shareholders: May view the sale as a routine diversification or liquidity event by an executive, especially given the pre-arranged nature under a 10b5-1 plan, which typically does not signal a change in the executive's confidence in the company's long-term prospects.

Key Dates

Recommendation

The filing details a pre-scheduled insider sale under a 10b5-1 plan, which is a routine event for executives managing their personal finances and equity compensation. It does not provide new information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as the transaction itself is neutral to the company's fundamental outlook.

Keywords

L3Harris Technologies, LHX, Christopher E. Kubasik, Insider Trading, Form 4, Stock Option Exercise, Stock Sale, 10b5-1 Plan, CEO, Director, Defense Industry