Director Mark Welsh awarded 349 Northrop Grumman (NYSE: NOC) stock units
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
WELSH MARK A III reported acquisition or exercise transactions in this Form 4 filing.
Northrop Grumman director Mark A. Welsh III received a grant of 349 shares of common stock on May 20, 2026. The award was priced at $552.17 per share and was deferred into a stock unit account under the Northrop Grumman 2024 Long-Term Incentive Stock Plan in a transaction exempt under Rule 16b-3.
After this award, he beneficially holds 4,470 shares and stock units in total, including 488 shares of common stock and 3,982 shares of common stock equivalents, including dividends, in stock unit accounts under the company’s long-term incentive plans.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
WELSH MARK A III
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock | 349 | $552.17 | $193K |
Holdings After Transaction:
Common Stock — 4,470 shares (Direct, null)
Footnotes (1)
- Represents shares of common stock deferred into a stock unit account pursuant to the Northrop Grumman 2024 Long-Term Incentive Stock Plan (the "Plan") in a transaction exempt pursuant to Rule 16b-3. Amount includes (i) 488 shares of common stock; and (ii) 3,982 shares of common stock, including dividends, held in a stock unit account pursuant to the Plan and the Northrop Grumman 2011 Long-Term Incentive Stock Plan. Dividends earned on shares held in the stock unit account were exempt from Section 16 and not reportable under Rule 16a-11.
Key Figures
Awarded shares: 349 shares
Grant price: $552.17 per share
Total holdings after grant: 4,470 shares/units
+2 more
5 metrics
Awarded shares
349 shares
Common stock grant on May 20, 2026
Grant price
$552.17 per share
Value used for the stock award
Total holdings after grant
4,470 shares/units
Beneficial ownership following the transaction
Direct common stock
488 shares
Common stock held outside stock unit accounts
Stock units including dividends
3,982 share units
Held in stock unit accounts under long-term incentive plans
Key Terms
stock unit account, Northrop Grumman 2024 Long-Term Incentive Stock Plan, Rule 16b-3, Section 16, +1 more
5 terms
stock unit account financial
"held in a stock unit account pursuant to the Plan and the Northrop Grumman 2011 Long-Term Incentive Stock Plan"
Northrop Grumman 2024 Long-Term Incentive Stock Plan financial
"deferred into a stock unit account pursuant to the Northrop Grumman 2024 Long-Term Incentive Stock Plan"
Rule 16b-3 regulatory
"in a transaction exempt pursuant to Rule 16b-3"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
Section 16 regulatory
"Dividends earned on shares held in the stock unit account were exempt from Section 16"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
Form 4 regulatory
"INSIDER FILING DATA (Form 4)"
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 insider transaction did Northrop Grumman (NOC) director Mark A. Welsh III report?
Mark A. Welsh III reported receiving 349 shares of Northrop Grumman common stock as a grant. The shares were credited to a stock unit account under the company’s 2024 Long-Term Incentive Stock Plan in a transaction exempt from short-swing profit rules under SEC Rule 16b-3.
Was the Northrop Grumman (NOC) Form 4 transaction an open-market stock purchase?
No, the transaction was a grant, not an open-market purchase. The Form 4 shows an "A" code for award acquisition, with 349 shares deferred into a stock unit account pursuant to Northrop Grumman’s 2024 Long-Term Incentive Stock Plan, exempt under SEC Rule 16b-3.
What is the Northrop Grumman 2024 Long-Term Incentive Stock Plan mentioned in the Form 4?
The 2024 Long-Term Incentive Stock Plan is Northrop Grumman’s equity compensation program. Under this plan, Mark A. Welsh III received 349 shares deferred into a stock unit account, and certain transactions under it are exempt from Section 16 short-swing profit rules via SEC Rule 16b-3.
At what price was the Northrop Grumman (NOC) stock grant to Mark A. Welsh III valued?
The reported grant of 349 Northrop Grumman common shares to Mark A. Welsh III was valued at $552.17 per share. This price is used in the Form 4 reporting for the award acquisition, which was credited to his stock unit account under the company’s long-term incentive plan.