Today, L3Harris Technologies, Inc. (NYSE:LHX), a company specializing in defense and aerospace systems, announced that its CEO Christopher E. Kubasik has established a pre-arranged trading plan for exercising stock options and selling the corresponding shares.
This plan is in compliance with Rule 10b5-1 of the Securities Exchange Act of 1934, which allows company insiders to set up a trading plan for selling stocks at a time when they are not in possession of material non-public information.
The plan pertains to options for 56,624 shares granted to Mr. Kubasik in February 2017, set to expire in February 2027. The sale of shares under this plan is scheduled to begin in October 2024 and will conclude by December 27, 2024, subject to certain minimum price conditions. These transactions are designed to be executed without Mr. Kubasik's discretion, to prevent any potential misuse of sensitive information that could affect stock prices.
Mr. Kubasik's current holdings significantly exceed the minimum stock ownership guidelines set by the company, indicating a robust personal investment in L3Harris Technologies. The planned sales are expected to be reported to the public through Form 4 and Form 144 filings with the U.S. Securities and Exchange Commission, as required by law.
The disclosure of this trading plan does not obligate L3Harris Technologies to report any future plans by other officers or directors or any changes to the existing plans, except as required by periodic filings such as Form 10-Q or Form 10-K. This strategy allows for a systematic selling of shares that can help in avoiding any appearance of market manipulation.
The announcement came alongside the company's regular SEC filings and is based on a press release statement. The establishment of such a plan is a common practice among executives to manage their stock holdings in a structured and compliant manner.
In other recent news, L3Harris Technologies has reported strong financial results for the second quarter of 2024, including a 9% increase in non-GAAP earnings per share, reaching $3.24. The company's segment operating margin hit 15.6%, with a significant backlog of $32 billion and over $5 billion in new contracts awarded during the quarter. This led to an increase in full-year guidance for revenue, margin rate, and EPS, with an EPS range of $12.85 to $13.15.
JPMorgan recently increased its price target for L3Harris Technologies to $276 from the previous $250, maintaining an Overweight rating on the stock. The firm's analyst noted that L3Harris had outperformed post-earnings, despite delivering strong results and raising its outlook.
L3Harris Technologies also celebrated the first anniversary of its acquisition of Aerojet Rocketdyne by announcing increased investments and substantial performance improvements. The company has expanded its manufacturing facilities, qualified additional suppliers, and significantly increased propulsion production.
The company's strategic initiatives and operational improvements are focused on meeting customer expectations and creating shareholder value. L3Harris Technologies is investing in new technologies, including Smart cell for radio integration and software for software-defined radios, and sees a $1 billion opportunity in the maritime sector. These are recent developments that investors should be aware of.
InvestingPro Insights
L3Harris Technologies (NYSE:LHX) has demonstrated a strong financial performance with a market capitalization of $42.78B and a notable revenue growth of 15.44% over the last twelve months as of Q2 2024. These figures underscore the company's robust position in the aerospace and defense industry. Investors may find the company's low PEG ratio of 0.75 particularly appealing, suggesting that LHX's stock price is potentially undervalued relative to its earnings growth rate.
Two InvestingPro Tips highlight the company's solid investment profile: LHX has raised its dividend for 22 consecutive years and is expected to see net income growth this year. These factors, combined with a dividend yield of 2.02% and a history of maintaining dividend payments for an impressive 54 consecutive years, may interest income-focused investors.
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