Form 4: Woodward Inc. Executive Sells Shares Under 10b5-1 Plan
SEC Form 4 Filing
Woodward Inc.'s EVP and COO, Thomas G. Cromwell, executed multiple sales of company stock under a pre-arranged 10b5-1 trading plan.
Summary
- Thomas G. Cromwell, EVP and COO of Woodward Inc., sold a total of 20,000 shares of Woodward Inc. common stock on November 29, 2024 and December 2, 2024.
- The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on May 17, 2024.
- On both November 29 and December 2, 10,000 shares were acquired through the exercise of non-qualified stock options at a price of $81.03 per share.
- On November 29, 7,313 shares were sold at a weighted average price of $179.76, and 2,687 shares were sold at a weighted average price of $180.62.
- On December 2, 10,000 shares were sold at a weighted average price of $179.54.
- Following these transactions, Mr. Cromwell directly owns 11,511 shares of Woodward Inc. common stock and indirectly owns 397 shares through the Woodward Retirement Savings Plan.
- He also holds 43,300 non-qualified stock options.
Sentiment
Score: 5
Explanation: The document is a routine disclosure of stock sales by an executive under a pre-arranged plan. It is neither positive nor negative in itself.
Risks
- Executive stock sales can sometimes be perceived negatively by the market, potentially impacting the stock price.
Industry Context
Executive stock sales are a common occurrence, and the use of a 10b5-1 plan is a standard practice to avoid accusations of insider trading. This filing is a routine disclosure of such activity.
Comparison to Industry Standards
- The use of a 10b5-1 trading plan is a common practice among executives at publicly traded companies, including competitors such as General Electric, Honeywell, and Rolls-Royce.
- These plans allow executives to sell shares at predetermined times and prices, avoiding accusations of insider trading.
- The reported transactions are consistent with standard executive compensation practices and do not indicate any unusual activity.
Stakeholder Impact
- The stock sales may have a minor impact on the stock price, but the use of a 10b5-1 plan mitigates concerns about insider trading.
Key Dates
| Date | Description |
|---|---|
| 10/01/2021 | Date non-qualified stock options became exercisable. |
| 05/17/2024 | Date the Rule 10b5-1 trading plan was adopted. |
| 11/29/2024 | Date of first reported stock option exercise and sale. |
| 12/02/2024 | Date of second reported stock option exercise and sale. |
| 12/03/2024 | Date of filing of the Form 4. |
| 10/01/2030 | Expiration date of the non-qualified stock options. |
Keywords
Woodward Inc., stock sale, Form 4, insider trading, Rule 10b5-1, executive, stock options, Thomas G. Cromwell
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