Form 4: RTX Executive Shane Eddy Exercises SARs, Sells Shares
Insider Transaction Report
RTX Corp's President of Pratt & Whitney, Shane G. Eddy, exercised Stock Appreciation Rights and subsequently sold common stock under a pre-arranged 10b5-1 plan.
Summary
- Shane G. Eddy, President of Pratt & Whitney for RTX Corp, engaged in transactions on August 27, 2025, under a Rule 10b5-1(c) plan.
- Eddy exercised Stock Appreciation Rights (SARs) for a total of 49,808 shares of common stock.
- The SARs exercised included 25,297 shares at an exercise price of $76, 12,594 shares at $71.62, and 11,917 shares at $82.35.
- Simultaneously, Eddy disposed of 23,840 shares of common stock at $159.64 and sold 25,968 shares of common stock at a weighted average price of $159.7886.
- The total number of shares acquired through SAR exercise (49,808) matches the total number of shares disposed of (49,808).
- Following these transactions, Eddy's direct beneficial ownership of common stock is 0 shares, while indirect beneficial ownership through a Savings Plan Trustee is 178 shares.
Sentiment
Score: 6
Explanation: The filing reflects a routine executive compensation event where long-term incentives are realized. The executive benefited from stock appreciation, and the transactions were pre-planned, mitigating any negative sentiment typically associated with insider selling.
Positives
- The executive realized significant value from long-term incentive compensation, with sale prices substantially higher than the SAR exercise prices.
- The sale prices of $159.64 and $159.7886 demonstrate a strong appreciation in RTX Corp's stock value compared to the SAR exercise prices ranging from $71.62 to $82.35.
Negatives
- Direct beneficial ownership of common stock by the executive decreased to zero following these transactions, which, while part of a compensation realization, represents a full divestment of directly held shares.
Future Outlook
NA
Industry Context
This filing details an individual executive's compensation realization and stock transactions, which are specific to the individual and the company's equity compensation plan, rather than reflecting broader industry trends.
Related Party Transactions
- The filing details transactions between a company executive (Shane G. Eddy) and the issuer (RTX Corp) involving the exercise of Stock Appreciation Rights and subsequent sales of common stock, which are inherently related-party transactions.
Stakeholder Impact
- Shareholders: The transactions represent a realization of executive compensation, which is a normal part of corporate governance and compensation structures. The pre-planned nature under Rule 10b5-1 reduces concerns about opportunistic selling.
- Employees: No direct impact on employees is indicated by this filing.
Key Dates
| Date | Description |
|---|---|
| 01/03/2020 | Date exercisable for 11,917 Stock Appreciation Rights. |
| 01/02/2021 | Date exercisable for 25,297 Stock Appreciation Rights. |
| 02/05/2022 | Date exercisable for 12,594 Stock Appreciation Rights. |
| 08/27/2025 | Transaction date for all reported acquisitions and dispositions of common stock and exercise of derivative securities. |
| 08/28/2025 | Signature date of the reporting person's attorney-in-fact. |
| 01/02/2027 | Expiration date for 11,917 Stock Appreciation Rights. |
| 01/01/2028 | Expiration date for 25,297 Stock Appreciation Rights. |
| 02/04/2029 | Expiration date for 12,594 Stock Appreciation Rights. |
Recommendation
holdThe filing details routine executive compensation realization and subsequent sales under a pre-arranged 10b5-1 plan. These transactions are not typically indicative of a change in the company's fundamental outlook or a reason to alter an investment thesis based solely on this report. Investors should focus on broader company performance and market conditions.
Keywords
RTX Corp, Shane G. Eddy, Insider Trading, Form 4, Stock Appreciation Rights, SARs, Equity Compensation, 10b5-1 Plan, Pratt & Whitney, Executive Compensation
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