[Form 4] TransDigm Group Incorporated Insider Trading Activity
TransDigm Group Inc. insider activity: Director Michael Graff executed a stock option and completed related open-market sales on 08/26/2025. Mr. Graff exercised an option for 1,760 shares with an adjusted exercise price of $156.47 and immediately sold 1,760 shares in multiple transactions at weighted average prices in ranges between $1,398.79 and $1,404.42, with reported average weighted sale prices noted per lot. Following these transactions his direct beneficial ownership is reported as 1,964 shares. He also reports indirect holdings of 7,000 shares held by certain trusts he manages and 5,096 shares held by a separate trust created by his spouse.
- Disclosure completeness: The form includes transaction dates, codes, quantities, exercise price adjustments, and sale price ranges with undertakings to provide per-price breakdowns upon request.
- Maintained indirect holdings: Significant indirect ownership is reported (7,000 shares in trusts and 5,096 shares in a spouse-created trust), indicating ongoing economic exposure.
- Reduction in direct ownership: After the reported exercise and sales, direct beneficial ownership decreased to 1,964 shares.
- Large same-day disposition: The director sold 1,760 shares the same day as exercising options, representing immediate monetization of exercised shares.
Insights
TL;DR: Routine option exercise followed by sales; direct stake decreased while significant indirect trust holdings remain.
The filing shows a standard pattern where a director exercised vested options (1,760 shares at an adjusted $156.47 exercise price) and sold an equal number of shares the same day in multiple blocks at weighted average prices in the $1,398.79–$1,404.42 ranges. Such transactions commonly reflect option exercises and near-immediate monetization. The director's reported direct holdings after these trades are 1,964 shares, while material indirect holdings remain in trusts (7,000 and 5,096 shares). For investors this is a disclosure of insider liquidity activity rather than a clear signal about company fundamentals.
TL;DR: Disclosure is complete for the transactions reported; trustee and trust holdings are explicitly identified.
The Form 4 provides the required detail: transaction dates, codes, quantities, exercise price adjustments for dividends, and explanatory notes on weighted-average sale prices and trust ownership. The filing identifies the reporting person as a director and discloses that certain shares are held in trusts for beneficiaries with the reporting person as trustee, and one trust created by the spouse. From a governance perspective, the report meets Section 16 disclosure norms and clarifies the nature of indirect ownership.