Fortinet CEO sells shares after option exercise
Ken Xie, President & CEO of Fortinet, exercised options for 155,000 shares at a $22.90 strike and multiple RSU grants, then sold 161,482 shares of common stock on August 3, 2026 at prices ranging from $159.45 to $164.48 per share.
Rhea-AI Filing Summary
Ken Xie, President & CEO of Fortinet, exercised options for 155,000 shares at a $22.90 strike and multiple RSU grants, then sold 161,482 shares of common stock on August 3, 2026 at prices ranging from $159.45 to $164.48 per share. 6,611 shares of common stock were relinquished and cancelled to cover tax withholding from RSU vesting. The option exercise left 306,470 option shares reported as remaining, and Xie’s spouse holds 4,848,774 shares indirectly. All reported sales were effected under a Rule 10b5-1 trading plan adopted on March 3, 2026.
Positive
- None.
Negative
- None.
Insights
Analyzing...
Insider Trade Summary 10b5-1
Exercise and sale activity reported; no spread calculated
Exercise and Sale
16 txns
Insider
Xie Ken
Role
PRESIDENT & CEO
Sold
161,482 shs ($26.27M)
Approx. gross sale proceeds
$26.27M
Approx. exercise cost
$3.55M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Nonqualified Stock Option (right to buy) F14 | 155,000 | $0.00 | $0.00 |
| Exercise | Common Stock | 155,000 | $22.90 | $3.55M |
| Sale | Common Stock F3, F4 | 18,409 | $160.1376 | $2.95M |
| Sale | Common Stock F3, F5 | 19,647 | $160.823 | $3.16M |
| Sale | Common Stock F3, F6 | 7,350 | $161.8201 | $1.19M |
| Sale | Common Stock F3, F7 | 67,971 | $163.0821 | $11.08M |
| Sale | Common Stock F3, F8 | 47,943 | $163.91 | $7.86M |
| Sale | Common Stock F3 | 162 | $164.49 | $27K |
| Exercise | Restricted Stock Units F9, F1, F10, F11 | 6,260 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F9, F1, F12, F11 | 4,558 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F9, F1, F13, F11 | 2,275 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 6,260 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 4,558 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 2,275 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock F2 | 6,611 | $161.95 | $1.07M |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 62,620 contracts (Direct);
Nonqualified Stock Option (right to buy) — 306,470 contracts (Direct);
Common Stock — 52,972,372 shares (Direct);
Common Stock — 4,848,774 shares (Indirect, By Spouse)
Footnotes (14)
- F1. Vesting of restricted stock units ("RSUs") previously granted to the Reporting Person.
- F2. Exempt transaction pursuant to Section 16b-3(e) - payment of exercise price or tax liability by delivering or withholding securities incident to the receipt, exercise or vesting of a security issued in accordance with Rule 16b-3. All of the shares reported as disposed of in this Form 4 were relinquished by the Reporting Person and cancelled by the Issuer in exchange for the Issuer's agreement to pay federal and state tax withholding obligations of the Reporting Person resulting from the vesting of restricted stock units.
- F3. The reported transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on March 3, 2026.
- F4. Represents the weighted average sale price. The lowest price at which shares were sold was $159.45 and the highest price at which shares were sold was $160.44. The Reporting Person undertakes to provide upon request to the staff of the Securities and Exchange Commission, the Issuer or its stockholders, full information regarding the total number of shares sold at each separate price within the ranges set forth in footnotes (4), (5), (6), (7) and (8) to this Form 4.
- F5. Represents the weighted average sale price. The lowest price at which shares were sold was $160.45 and the highest price at which shares were sold was $161.44.
- F6. Represents the weighted average sale price. The lowest price at which shares were sold was $161.45 and the highest price at which shares were sold was $162.43.
- F7. Represents the weighted average sale price. The lowest price at which shares were sold was $162.49 and the highest price at which shares were sold was $163.48.
- F8. Represents the weighted average sale price. The lowest price at which shares were sold was $163.49 and the highest price at which shares were sold was $164.48.
- F9. Each RSU represents a contingent right to receive one share of the Issuer's common stock upon settlement.
- F10. 25% of the RSUs vested on February 1, 2024, and the remaining 75% of the RSUs will vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the Reporting Person's provision of service to the Issuer on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon settlement.
- F11. RSUs do not expire; they either vest or are canceled prior to the vesting date.
- F12. 25% of the RSUs vested on February 1, 2025, and the remaining 75% of the RSUs will vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the Reporting Person's provision of service to the Issuer on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon settlement.
- F13. 25% of the RSUs vested on February 1, 2026, and the remaining 75% of the RSUs will vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the Reporting Person's provision of service to the Issuer on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon vesting.
- F14. The options are fully vested.
Key Figures
Options Exercised: 155,000 shares
Option Exercise Price: $22.90 per share
Shares Sold: 161,482 shares
+5 more
8 metrics
Options Exercised
155,000 shares
Nonqualified stock option exercised at a $22.90 strike on 2026-08-03
Option Exercise Price
$22.90 per share
Exercise price of the nonqualified stock option exercised for 155,000 shares
Shares Sold
161,482 shares
Total Fortinet common shares sold across six sale transactions
Sale Price Range
$159.45–$164.48 per share
Weighted-average sale price ranges across reported sale tranches
Shares Withheld for Taxes
6,611 shares
Shares relinquished and cancelled to cover tax withholding on RSU vesting
Options Remaining
306,470 shares
Total option shares reported as outstanding after the 155,000-share exercise
Indirect Spousal Holdings
4,848,774 shares
Common stock held indirectly by spouse as of 2026-08-01
Total Derivative Shares Exercised
168,093 shares
Aggregate shares from option and RSU derivative exercises reported in this filing
Key Terms
Rule 10b5-1 trading plan, Restricted Stock Units, Nonqualified Stock Option, Section 16b-3(e), +1 more
5 terms
Rule 10b5-1 trading plan regulatory
"The reported transaction was effected pursuant to a Rule 10b5-1 trading plan..."
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
Restricted Stock Units financial
"Vesting of restricted stock units ("RSUs") previously granted to the Reporting Person."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Nonqualified Stock Option financial
"Nonqualified Stock Option (right to buy) with a $22.9000 exercise price."
A nonqualified stock option (NQSO) is a company grant that gives an individual the right to buy shares at a set price but does not meet special tax rules for incentive stock options; when exercised the difference between the market price and the exercise price is treated as ordinary income for the recipient and as a tax-deductible expense for the company. It matters to investors because NQSOs affect an employee’s after-tax proceeds, the company’s reported expenses, and potential share dilution—think of it like a cash bonus that converts into stock but is taxed as regular pay when you take it.
Section 16b-3(e) regulatory
"Exempt transaction pursuant to Section 16b-3(e) - payment of exercise price or tax liability..."
weighted average sale price financial
"Represents the weighted average sale price. The lowest price at which shares were sold..."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did Fortinet (FTNT) CEO Ken Xie report?
Ken Xie reported exercising options and RSUs and then selling common stock. He exercised derivatives into 168,093 shares, sold 161,482 shares of Fortinet common stock, and had additional shares withheld to satisfy tax obligations from RSU vesting.
What Fortinet (FTNT) stock options did Ken Xie exercise?
Ken Xie exercised a nonqualified stock option covering 155,000 shares at a $22.90 exercise price. The options were reported as fully vested and scheduled to expire on February 21, 2027, leaving 306,470 option shares reported as remaining after the exercise.
Were Ken Xie’s Fortinet (FTNT) stock sales under a Rule 10b5-1 plan?
Yes. Footnotes state the reported sales were effected under a Rule 10b5-1 trading plan adopted by Ken Xie on March 3, 2026. The filing also checks the affirmative Rule 10b5-1 box, indicating trades were pre-arranged under that plan.
AI-generated analysis. How Rhea-AI works. Not financial advice.
