[Form 4] TransDigm Group Incorporated Insider Trading Activity
Joel Reiss, Co-Chief Operating Officer of TransDigm Group (TDG), reported insider transactions on 08/20/2025. He exercised stock options to acquire 3,000 shares at an exercise price of $284.97, then sold a total of 3,000 common shares in multiple blocks at weighted average prices in the approximate ranges of $1,399.40–$1,413.60. After these transactions the reporting person beneficially owned 3,600 common shares directly. The filing also shows beneficial ownership of 53,000 shares underlying stock options exercisable through 11/08/2027. The report indicates the transactions were made pursuant to a written plan consistent with Rule 10b5-1.
- Transactions reported under a 10b5-1 plan, indicating pre-arranged trading consistent with compliance practices
- Retains significant derivative-based ownership (53,000 shares underlying exercisable options through 11/08/2027), maintaining long-term exposure
- Sold 3,000 common shares in multiple blocks at weighted average prices roughly between $1,399.40 and $1,413.60, reducing direct holdings
- Direct common shares declined to 3,600 after the reported transactions
Insights
TL;DR: Insider exercised options and sold an equal number of shares under a 10b5-1 plan; substantive derivative holdings remain large.
The filing documents a routine option exercise (3,000 shares at $284.97) followed by sales of 3,000 shares executed in multiple blocks at weighted average prices roughly between $1,399 and $1,413. The reporting person retains sizable option-based exposure (53,000 underlying shares exercisable through 11/08/2027) and holds 3,600 shares directly after the trades. The checkbox indicating the transaction was made pursuant to a written plan signals pre-arranged trading consistent with Rule 10b5-1, which reduces informational-timing concerns about the sales.
TL;DR: Transactions appear structured and compliant; material governance implications are limited based on disclosed facts.
The filer identified as an officer and checked the box indicating the use of a written trading plan, suggesting adherence to an affirmative defense under Rule 10b5-1. The one-day sequence—option exercise paired with contemporaneous share dispositions—matches common insider liquidity transactions. Disclosed exercisable options (53,000 shares) maintain the officer's long-term economic alignment with shareholders.