Flanagan Sarah Louise 4

What Happened

• Sarah Louise Flanagan, Interim CFO and VP of Financial Operations at AAR CORP (AIR), exercised 10,750 derivative shares (code M) on 2026-02-04 at $37.66 per share (total exercise cost $404,845) and sold 10,750 shares in open-market trades the same day for a weighted average price of $108.56 per share (gross proceeds $1,166,992). The Form 4 also reports a separate derivative disposition of 10,750 shares at $0 on the same date (listed as a conversion/derivative entry).

Key Details

• Transaction date: 2026-02-04
• Exercise: 10,750 shares at $37.66 → $404,845 total (code M)
• Sale: 10,750 shares sold in multiple open-market trades at a weighted avg $108.56 → $1,166,992 gross proceeds (code S)
• Reported derivative entry: 10,750 shares listed as disposed at $0 (conversion/derivative)
• Price range note: shares sold in multiple trades at prices from $107.53 to $110.385 (per footnote F1)
• Shares owned after transaction: not specified in the provided filing excerpt
• Filing timeliness: Reported on 2026-02-04 for transactions dated 2026-02-04 (no late filing indicated)

Context

• This pattern—exercising options and selling the resulting shares the same day—is commonly a cashless exercise (exercise + immediate sale). The sale is typically treated as a routine liquidity event rather than a long-term buy signal; purchases generally carry more weight as a bullish indicator. The separate $0 derivative disposition reported may reflect how the option conversion/settlement was recorded on the Form 4; the filing’s footnote offers per-trade price details on the sale if requested.