8-KOther Events

CURTISS WRIGHT CORP 8-K Report, Corporate Update (Nov 3, 2020)

Filed November 3, 2020For Securities:CW

Summary

Curtiss-Wright Corporation (CW) announced on November 2, 2020, the adoption of a written trading plan under Rule 10b5-1, in conjunction with its previously announced $200 million share repurchase program authorized on October 26, 2020. This strategic move allows the company to buy back its stock even during blackout periods, demonstrating a commitment to returning capital to shareholders. The specific trading plan will involve the repurchase of $50 million worth of common stock, executed equally throughout calendar year 2021. Purchases will commence on January 4, 2021, and conclude on December 31, 2021. This structured approach provides a mechanism for consistent capital allocation and signals management's confidence in the company's valuation and future prospects.

Key Highlights

  • 1Company adopted a Rule 10b5-1 trading plan on November 2, 2020.
  • 2The plan is linked to the previously announced $200 million share repurchase program.
  • 3A total of $50 million will be repurchased under this specific trading plan.
  • 4Purchases will be executed equally over calendar year 2021.
  • 5The trading plan will be effective from January 4, 2021, to December 31, 2021.
  • 6Rule 10b5-1 plans allow repurchases during blackout periods, indicating proactive capital management.
  • 7The company may implement subsequent trading plans after this one expires.

Frequently Asked Questions

A Rule 10b5-1 trading plan is a written document that allows a company to repurchase its own stock at predetermined times or prices, even when the company might otherwise be restricted from trading due to insider trading rules or company-imposed blackout periods. Curtiss-Wright is adopting this plan to facilitate the execution of its share repurchase program in a structured and compliant manner.

Under this specific Rule 10b5-1 trading plan, Curtiss-Wright intends to repurchase $50 million of its outstanding common stock. This is part of a larger, authorized $200 million share repurchase program.

The purchases under this trading plan are scheduled to be executed equally over the course of calendar year 2021. The plan will commence on January 4, 2021, and will cease on December 31, 2021.

Adopting a share repurchase program and a Rule 10b5-1 plan is typically a sign of financial strength and management's confidence in the company's intrinsic value. Companies often use these mechanisms to return capital to shareholders and potentially offset dilution from stock-based compensation, rather than signaling distress.