SATS.NASDAQEchostar CORP

Form 4: Ergen Family Transactions: EchoStar Corp (SATS) Ownership Changes Disclosed

Sentiment:

SEC Form 4

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Charles W. Ergen and Cantey M. Ergen report changes in their beneficial ownership of EchoStar Corp shares, including distributions from GRATs and holdings through various entities.

Summary

  • Charles W. Ergen, Chairman of EchoStar Corp, and Cantey M. Ergen, Senior Advisor, filed a Form 4 detailing changes in their beneficial ownership of EchoStar shares.
  • The report includes direct and indirect holdings of Class A Common Stock and Class B Common Stock.
  • A distribution of 3,693,428 Class B shares from the Ergen Two-Year March 2022 SATS GRAT to Mr. Ergen occurred on April 1, 2024, upon the GRAT's expiration.
  • The Ergens hold shares through various entities, including a 401(k), a charitable foundation, and Telluray Holdings, LLC.
  • Mr. Ergen established several GRATs (Grantor Retained Annuity Trusts) in previous years, which hold significant amounts of EchoStar Class B shares that will expire in the coming years.
  • Mrs. Ergen serves as the trustee for these GRATs.
  • The report details the number of Class A and Class B shares held by each entity and the Ergens' relationship to those entities.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing, so the sentiment is neutral.

Risks

  • The expiration of the GRATs could lead to further distributions of shares to Mr. Ergen, potentially impacting the market.
  • The Ergens' significant holdings in EchoStar mean that their actions could have a substantial impact on the company's stock price.

Future Outlook

The expiration of various GRATs in the coming years will result in further distributions of EchoStar shares to Mr. Ergen.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders.

Stakeholder Impact

  • The changes in ownership may be of interest to shareholders, as they provide insight into the holdings of key insiders.
  • The expiration of GRATs and subsequent distribution of shares could potentially impact the market price of EchoStar stock.

Key Dates

DateDescription
May 12, 2023Mr. Charles W. Ergen established the Ergen Two-Year May 2023 DISH GRAT.
April 1, 2024Distribution of 3,693,428 Class B shares from the Ergen Two-Year March 2022 SATS GRAT to Mr. Ergen.
April 3, 2024Form 4 filing date.
June 23, 2024Scheduled expiration date of the Ergen Two-Year June 2022 SATS GRAT.
December 21, 2024Scheduled expiration date of the Ergen Two-Year December 2022 SATS GRAT.
May 12, 2025Scheduled expiration date of the Ergen Two-Year May 2023 DISH GRAT.
June 23, 2025Scheduled expiration date of the Ergen Two-Year June 2023 SATS GRAT.
June 26, 2025Scheduled expiration date of the Ergen Two-Year June 2023 DISH GRAT.
December 22, 2025Scheduled expiration date of the Ergen Two-Year December 2023 SATS GRAT.

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