Xie Ken 4

What Happened

• Ken Xie, President & CEO of Fortinet, exercised 155,000 stock options at a $22.90 strike (cost ≈ $3,549,500) on June 2, 2026, and sold multiple blocks of Fortinet shares in open‑market transactions the same day. The open‑market sales totaled about 160,632 shares and generated roughly $23.39 million in proceeds. The filing also reports a conversion/disposition line for 155,000 derivative shares at $0 reflecting the mechanics of the exercise/conversion.

Key Details

• Transaction date: June 2, 2026 (Form 4 filed June 3, 2026 — timely)
• Option exercise: 155,000 shares acquired at $22.90 (code M) — cost ≈ $3,549,500; options fully vested (footnote F10)
• Open‑market sales: 160,632 shares sold in multiple tranches at prices ranging roughly $141.81–$149.01; total proceeds ≈ $23,385,059 (weighted average sale price ≈ $145.6/share)
• Plan/authorization: Sales were effected under a Rule 10b5‑1 trading plan adopted Dec 9, 2024 (footnote F1)
• Footnotes F2–F9 list the weighted average sale prices and the low/high price ranges for each tranche; reporting person offers to provide per‑price quantity on request
• Shares owned after the transactions: not specified in the excerpt provided — see the full Form 4 for beneficial ownership totals

Context

• This is an option exercise followed by substantial open‑market sales (a common pattern when executives exercise vested options and sell shares to cover costs, taxes, or diversify). The filing shows both the acquisition via exercise and contemporaneous sales; the $0 derivative disposition line relates to conversion mechanics rather than a cash sale.
• Because the sales were made under a pre‑arranged 10b5‑1 plan, they were pre‑scheduled and not necessarily a contemporaneous expression of sentiment.