8-KOther Events

CURTISS WRIGHT CORP 8-K Report, Corporate Update (Dec 8, 2016)

Filed December 8, 2016For Securities:CW

Summary

Curtiss-Wright Corporation (CW) announced on December 7, 2016, the adoption of a written trading plan under Rule 10b5-1 to facilitate its share repurchase program. This plan, authorized by the Board of Directors, allocates $50 million for share repurchases to be executed equally throughout the upcoming year. The trading plan will commence on January 3, 2017, and conclude on December 29, 2017. The implementation of a Rule 10b5-1 plan allows CW to buy back its stock even during periods when insider trading restrictions might otherwise prevent such actions. A designated broker will manage these repurchases on behalf of the company, adhering to the plan's specific terms and limitations. This initiative signals management's confidence in the company's valuation and its commitment to returning capital to shareholders, a move typically viewed favorably by investors.

Key Highlights

  • 1Curtiss-Wright Corporation (CW) established a Rule 10b5-1 trading plan on December 7, 2016.
  • 2The company has authorized a $50 million share repurchase program.
  • 3Repurchases under the plan will be executed equally over the course of one year.
  • 4The trading plan will be effective from January 3, 2017, to December 29, 2017.
  • 5The 10b5-1 plan allows for share repurchases during periods of trading blackouts.
  • 6A third-party broker will execute the share buybacks.
  • 7The company may implement subsequent trading plans after the current one expires.

Frequently Asked Questions

A Rule 10b5-1 trading plan is a pre-arranged plan that allows companies to buy back their own stock in a way that complies with insider trading regulations. It enables companies to repurchase shares during periods when they might otherwise be restricted from trading, such as during blackout periods.

The company has authorized a total of $50 million for share repurchases under this plan.

The repurchases will be executed equally over the course of one year, starting on January 3, 2017, and concluding on December 29, 2017.

A share repurchase program, especially when executed through a structured plan like this, often signals that management believes the company's stock is undervalued. It also demonstrates a commitment to returning capital to shareholders, which can be viewed positively by investors.