[Form 4] HUNTINGTON INGALLS INDUSTRIES, INC. Insider Trading Activity
Rhea-AI Filing Summary
Tracy B. McKibben, a director of Huntington Ingalls Industries, Inc. (HII), reported a non‑derivative acquisition on 09/12/2025. The Form 4 shows 25.128 director stock units (SUA) were acquired at a reported price of $0 as dividend equivalents under the company’s 2012 and 2022 Long‑Term Incentive Stock Plans. Following the credited dividend equivalents, the filing reports 5,138.57 SUAs beneficially owned by the reporting person. The filing explains SUAs convert to one share each and dividend equivalents are calculated by dividing the cash dividend on SUAs by the closing stock price on the dividend payment date.
Positive
- Director received dividend equivalents credited to existing SUAs, preserving equity compensation value without cash outlay
- Clear disclosure of plan mechanics: SUAs convert to one share and dividend equivalents are calculated using the closing price on dividend date
Negative
- None.
Insights
TL;DR Director received small dividend‑equivalent credit to existing director units; routine non‑cash compensation event.
The filing documents a routine corporate governance practice: non‑employee directors holding SUA awards receive dividend equivalents credited as additional SUAs. The amount reported (25.128 SUAs) is immaterial relative to total outstanding equity and reflects standard plan terms rather than a change in oversight or strategy. This is a common mechanism to preserve economic parity for equity‑based compensation during cash dividend periods.
TL;DR Transaction reflects plan mechanics of dividend equivalents; no cash payment and no exercised options.
The entry shows dividend equivalents credited to SUAs under the 2012 and 2022 LTISPs and a $0 reported price for the acquisition, consistent with equitable crediting rather than a market purchase. The filing also states each SUA equals one share payable after service ends, clarifying timing of settlement. This is a standard, non‑dilutive compensation accounting occurrence from the company perspective.