Form 4: SVP, COO Exercises Options, Sells SCI Shares

Service Corp International's SVP and COO, John H. Faulk, exercised options and subsequently sold 14,550 shares of common stock for a weighted average price of $81.5656 per share.

Summary

• John H. Faulk, SVP and COO of Service Corp International (SCI), reported an exercise of stock options and a subsequent sale of common stock on August 20, 2025.
• Faulk exercised options to acquire 14,550 shares of common stock at an exercise price of $37.53 per share.
• Immediately following the exercise, Faulk sold 14,550 shares of common stock at a weighted average price of $81.5656 per share.
• The sale price ranged from $81.2850 to $81.8700 per share.
• After these transactions, Faulk's direct beneficial ownership of common stock stands at 54,681 shares.
• The options exercised had vested in three equal installments on February 13, 2019, 2020, and 2021, and were set to expire on February 13, 2026.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged sale.

Sentiment

Score: 6

Explanation: The transaction represents a profitable exercise and sale for the insider, but involves a reduction in direct beneficial ownership. As a pre-planned 10b5-1 transaction, it is generally viewed as neutral to slightly positive for the insider, with minimal broader market implications.

Positives

• The executive realized a significant profit from the option exercise and subsequent sale, with the weighted average sale price of $81.5656 being more than double the exercise price of $37.53 per share.
• The transaction was executed under a Rule 10b5-1 plan, suggesting a pre-scheduled sale rather than a reaction to recent non-public information.

Negatives

• The transaction represents a reduction in the direct beneficial ownership of common stock by a key executive, which can sometimes be perceived as a slight negative signal by investors, even if pre-planned.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Industry Context

This is a routine insider transaction report and does not provide specific context on broader industry trends or competitors. It reflects an individual executive's compensation and personal financial planning.

Stakeholder Impact

• Shareholders: May observe a reduction in direct insider ownership, though the pre-planned nature of the transaction under Rule 10b5-1 typically mitigates concerns about its signaling effect.

Key Dates

Recommendation

This Form 4 reports a routine exercise of options and subsequent sale of shares by a senior executive, likely for diversification or liquidity purposes. Such a transaction, especially when pre-planned under Rule 10b5-1, generally does not indicate a fundamental shift in company prospects and therefore does not warrant a change in investment recommendation based solely on this filing.

Keywords

Service Corp International, SCI, Insider Trading, Form 4, Stock Sale, Option Exercise, Executive Transaction, John H. Faulk, 10b5-1 Plan