Fortinet CEO sells shares, exercises 155,000 options
Fortinet, Inc.’s President & CEO Ken Xie reported a mix of stock option exercises and share sales.
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Form Type
4
Rhea-AI Filing Summary
Fortinet, Inc.’s President & CEO Ken Xie reported a mix of stock option exercises and share sales. On June 2, 2026, he exercised 155,000 nonqualified stock options at $22.90 per share, converting them into common stock.
That same day, he sold 160,632 shares of common stock in multiple open-market transactions at weighted average prices generally between about $141.81 and $149.01, under a pre-arranged Rule 10b5-1 trading plan. After these transactions, he directly holds 52,972,372 Fortinet shares, while his spouse holds an additional 4,848,774 shares indirectly reported as “by spouse.”
Insider Trade Summary 10b5-1
Exercise and sale activity reported; no spread calculated
Exercise and Sale
11 txns
Insider
Xie Ken
Role
PRESIDENT & CEO
Sold
160,632 shs ($23.39M)
Approx. gross sale proceeds
$23.39M
Approx. exercise cost
$3.55M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Nonqualified Stock Option (right to buy) | 155,000 | $0.00 | $0.00 |
| Exercise | Common Stock | 155,000 | $22.90 | $3.55M |
| Sale | Common Stock | 9,641 | $142.3735 | $1.37M |
| Sale | Common Stock | 19,867 | $143.4337 | $2.85M |
| Sale | Common Stock | 39,854 | $144.2902 | $5.75M |
| Sale | Common Stock | 12,821 | $145.0395 | $1.86M |
| Sale | Common Stock | 37,540 | $146.3618 | $5.49M |
| Sale | Common Stock | 13,790 | $147.3747 | $2.03M |
| Sale | Common Stock | 18,492 | $148.235 | $2.74M |
| Sale | Common Stock | 8,627 | $148.9353 | $1.28M |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Nonqualified Stock Option (right to buy) — 461,470 contracts (Direct);
Common Stock — 52,972,372 shares (Direct);
Common Stock — 4,848,774 shares (Indirect, By spouse)
Footnotes (10)
- F1. The reported transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on December 9, 2024.
- F2. Represents the weighted average sale price. The lowest price at which shares were sold was $141.81 and the highest price at which shares were sold was $142.80. 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 (2) through (9) to this Form 4.
- F3. Represents the weighted average sale price. The lowest price at which shares were sold was $142.81 and the highest price at which shares were sold was $143.80.
- F4. Represents the weighted average sale price. The lowest price at which shares were sold was $143.81 and the highest price at which shares were sold was $144.80.
- F5. Represents the weighted average sale price. The lowest price at which shares were sold was $144.81 and the highest price at which shares were sold was $145.68.
- F6. Represents the weighted average sale price. The lowest price at which shares were sold was $145.86 and the highest price at which shares were sold was $146.85.
- F7. Represents the weighted average sale price. The lowest price at which shares were sold was $146.87 and the highest price at which shares were sold was $147.86.
- F8. Represents the weighted average sale price. The lowest price at which shares were sold was $147.87 and the highest price at which shares were sold was $148.82.
- F9. Represents the weighted average sale price. The lowest price at which shares were sold was $148.87 and the highest price at which shares were sold was $149.01.
- F10. The options are fully vested.
Key Figures
Shares sold: 160,632 shares
Options exercised: 155,000 shares
Exercise price: $22.90/share
+5 more
8 metrics
Shares sold
160,632 shares
Total common shares sold on June 2, 2026
Options exercised
155,000 shares
Nonqualified stock options exercised at $22.90
Exercise price
$22.90/share
Conversion or exercise price of nonqualified options
Direct holdings after
53,133,004 shares
Common stock directly owned following transactions
Indirect spouse holdings
4,848,774 shares
Common stock held "By spouse" as indirect ownership
Highest sale range price
$149.01/share
Highest price in disclosed sale price ranges
Lowest sale range price
$141.81/share
Lowest price in disclosed sale price ranges
Rule 10b5-1 adoption date
December 9, 2024
Adoption date of pre-arranged trading plan
Key Terms
Rule 10b5-1 trading plan, Nonqualified Stock Option (right to buy), weighted average sale price, derivative security, +1 more
5 terms
Rule 10b5-1 trading plan regulatory
"The reported transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on December 9, 2024."
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.
Nonqualified Stock Option (right to buy) financial
"security_title": "Nonqualified Stock Option (right to buy)""
weighted average sale price financial
"Represents the weighted average sale price."
derivative security financial
"Exercise or conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
indirect ownership financial
""ownership_type": "indirect""
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Fortinet (FTNT) CEO Ken Xie report in this Form 4 filing?
Ken Xie reported exercising options and selling shares of Fortinet common stock. He exercised 155,000 nonqualified stock options at $22.90 and sold 160,632 shares in multiple open-market transactions, all dated June 2, 2026 and disclosed as part of his routine reporting.
What stock options did Ken Xie exercise in the Fortinet (FTNT) Form 4?
He exercised 155,000 nonqualified stock options with a conversion or exercise price of $22.90 per share. These fully vested options converted into 155,000 shares of Fortinet common stock, and the related derivative entry shows the same underlying share amount and an expiration date in 2027.
What does the Form 4 reveal about Ken Xie’s spouse’s Fortinet (FTNT) holdings?
The Form 4 lists an indirect ownership entry of 4,848,774 Fortinet common shares noted as "By spouse." This entry is categorized as a holding, with no transaction shares or price reported, indicating the spouse’s sizable position is being disclosed rather than newly bought or sold.
AI-generated analysis. How Rhea-AI works. Not financial advice.
