Form 4: SCI COO Sells Shares After Option Exercise

Service Corp International's COO, John H. Faulk, exercised stock options and subsequently sold a portion of the acquired common stock.

Summary

• John H. Faulk, SVP and COO of Service Corp International (SCI), reported transactions involving the exercise of stock options and subsequent sale of common stock.
• On August 8, 2025, Mr. Faulk exercised options to acquire 11,615 shares of common stock at an exercise price of $37.53 per share.
• Concurrently, he sold these 11,615 shares at a weighted average price of $80.273 per share, realizing an estimated profit of approximately $42.74 per share.
• Additionally, on the same date, Mr. Faulk exercised options for another 2,935 shares of common stock at $37.53 per share.
• These 2,935 shares were also sold at a weighted average price of $80.5982 per share, yielding an estimated profit of approximately $43.07 per share.
• The total estimated profit from these sales is approximately $623,090.93.
• Following these transactions, Mr. Faulk beneficially owns 54,681 shares of common stock directly.
• The options exercised had vested in three equal installments on February 13, 2019, 2020, and 2021.

Sentiment

Score: 5

Explanation: The transaction represents an executive exercising vested stock options and subsequently selling shares for personal liquidity and diversification, which is a common occurrence and does not inherently indicate a positive or negative outlook on the company's future performance.

Positives

• The exercise of stock options indicates that the executive found value in exercising at the stated price, suggesting a belief in the company's underlying value at the time of vesting.
• The executive realized a significant profit of approximately $623,090.93 from the sale of shares acquired through option exercise, demonstrating the value creation for long-term equity holders.

Negatives

• The sale of 14,550 shares by a key executive, while common for liquidity and diversification, reduces their direct ownership stake and could be interpreted by some as a lack of conviction, although it is a routine transaction.

Risks

• This Form 4 filing primarily reports an insider transaction and does not contain specific disclosures regarding company-wide risks or future challenges.

Future Outlook

This Form 4 filing reports an individual executive's past stock transactions and does not provide any forward-looking statements or guidance regarding the company's future outlook.

Industry Context

This filing reports an individual executive's stock transactions and does not provide information relevant to broader industry trends or competitive analysis.

Stakeholder Impact

• The primary impact is on the reporting executive's personal financial holdings.
• For shareholders, this is a routine disclosure of an insider transaction, which typically has minimal direct impact on company operations or strategy.

Key Dates

Recommendation

This Form 4 details a routine insider transaction where an executive exercised vested stock options and subsequently sold a portion of the acquired shares. Such transactions are common for liquidity and diversification purposes and typically do not signal a change in the company's fundamental outlook or warrant a strong buy or sell recommendation based solely on this filing.

Keywords

Service Corp International, SCI, Form 4, Insider Trading, Stock Options, Share Sale, John H. Faulk, Executive Compensation