Fortinet (FTNT) CTO Michael Xie gifts 11.7M shares via family trusts
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Fortinet, Inc. VP, Engineering & CTO Michael Xie reported several non-market gifts of Fortinet common stock held through family trusts. The Form 4 shows four bona fide gift transactions totaling 11,709,176 shares of common stock, all coded as gifts and executed at a price of $0.00 per share, meaning no sale proceeds were received.
The gifted shares were held indirectly through various trusts, including grantor retained annuity trusts benefiting Xie and his spouse and children’s trusts where he and his spouse serve as trustees. After these transactions, Xie continues to report significant ownership, including 9,927,517 shares held directly and large remaining indirect positions through the trusts, indicating these transfers are estate- and family-planning moves rather than open-market selling.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
11,709,176 shares gifted
Mixed
7 txns
Insider
Xie Michael
Role
VP, ENGINEERING & CTO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Gift | Common Stock | 2,927,294 | $0.00 | -- |
| Gift | Common Stock | 2,927,294 | $0.00 | -- |
| Gift | Common Stock | 2,927,294 | $0.00 | -- |
| Gift | Common Stock | 2,927,294 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Common Stock — 4,646,144 shares (Indirect, By Trust);
Common Stock — 9,927,517 shares (Direct, null)
Footnotes (1)
- These securities are held by a grantor retained annuity trust for the benefit of the Reporting Person. These securities are held by the 2010 K.A. Family Trust dated May 3, 2010, for which the Reporting Person serves as a trustee. These securities are held by a grantor retained annuity trust for the benefit of the Reporting Person's spouse. These securities are held by the KAXX Trust under the K.A. Children's Trust dated February 9, 2011, for which the Reporting Person and his spouse serve as trustees. These securities are held by the KAJJ Trust under the K.A. Children's Trust dated February 9, 2011, for which the Reporting Person and his spouse serve as trustees.
Key Figures
Gifted shares: 11,709,176 shares
Per-gift transaction size: 2,927,294 shares
Gift price: $0.00 per share
+5 more
8 metrics
Gifted shares
11,709,176 shares
Total bona fide gifts of common stock
Per-gift transaction size
2,927,294 shares
Shares in each G-coded gift
Gift price
$0.00 per share
Reported price for G-coded gifts
Direct holdings after transactions
9,927,517 shares
Direct common stock held by Michael Xie
Indirect trust holding A
25,680,202 shares
Common stock held indirectly by trust
Indirect trust holding B
22,752,908 shares
Common stock held indirectly by trust
Gift transactions count
4
Number of G-coded bona fide gifts
Holding entries
3
Non-transactional holding records in summary
Key Terms
bona fide gift, grantor retained annuity trust, indirect ownership, children's trust, +1 more
5 terms
bona fide gift financial
"transaction_code_description: "Bona fide gift" for each G-coded entry"
A bona fide gift is a genuine, voluntary transfer of money, property, or benefits from one party to another made without expectation of repayment, services, or hidden conditions. Investors care because such gifts can affect company disclosures, related‑party transaction rules, tax treatment, and perceived conflicts of interest; think of it like someone giving you a present with no strings attached — but on a corporate scale, auditors and regulators need to verify it really is unconditional.
grantor retained annuity trust financial
"These securities are held by a grantor retained annuity trust for the benefit of the Reporting Person."
A grantor retained annuity trust (GRAT) is an estate-planning tool where the person who creates the trust transfers assets into it but receives fixed cash payments (an annuity) from the trust for a set number of years; whatever remains after that term passes to designated beneficiaries. It matters to investors because it can shift future appreciation of assets out of the creator’s taxable estate—like putting an asset into a timed vending machine that pays you fixed amounts while any extra value that grows inside the machine goes to heirs with reduced gift or estate tax consequences.
indirect ownership financial
"ownership_type: "indirect" and nature_of_ownership: "By trust""
children's trust financial
"KAXX Trust under the K.A. Children's Trust dated February 9, 2011"
Form 4 regulatory
"INSIDER FILING DATA (Form 4): { "issuerName": "Fortinet, Inc.""
Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.
FAQ
What did Fortinet (FTNT) executive Michael Xie report in this Form 4?
Michael Xie reported several non-market transactions involving Fortinet common stock. The Form 4 primarily discloses four bona fide gifts of indirectly held shares through family trusts, plus updated direct and indirect share balances after these transfers.
Are Michael Xie’s Fortinet (FTNT) transactions in this Form 4 open-market sales?
No, the reported transactions are bona fide gifts, not market sales. The Form 4 uses transaction code G, with a $0.00 per-share price, indicating transfers to family trusts without sale proceeds rather than open-market selling activity.
Does this Fortinet (FTNT) Form 4 indicate remaining indirect holdings for Michael Xie?
Yes. After the gifts, the Form 4 reports large remaining indirect positions through trusts, including entries showing 25,680,202 and 22,752,908 Fortinet shares held by trusts, alongside other indirect balances. These reflect continued substantial trust-based ownership.