Form 4: Leidos Director Exercises Options, Adjusts Holdings

Leidos Holdings, Inc. Director Harry M. Jansen Kraemer Jr. exercised stock options and adjusted his direct common stock holdings.

Summary

• Director Harry M. Jansen Kraemer Jr. of Leidos Holdings, Inc. exercised 3,345 stock options at an exercise price of $75.02 per share on February 20, 2026.
• Following the option exercise, 1,424 shares of common stock were withheld by the issuer at a price of $176.27 per share to cover the exercise price and associated fees.
• After these transactions, Mr. Kraemer directly holds 93,281 shares of Leidos common stock.
• He also indirectly holds 128,811.1423 shares of common stock through a Key Executive Stock Deferral Plan.
• The exercised stock options were exercisable since May 1, 2020, and had an expiration date of May 9, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a routine insider transaction where a director exercised vested stock options. The exercise itself is neutral, but the fact that the options were in-the-money and exercised before expiration can be seen as a minor positive.

Positives

• Director exercised stock options, indicating a potential belief in the company's value or a planned liquidity event.
• The exercise price of $75.02 is significantly lower than the withholding price of $176.27, suggesting the options were 'in-the-money' and profitable for the director.

Negatives

• A portion of shares (1,424) was disposed of to cover taxes and exercise costs, which is a common practice but reduces the director's direct holdings.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider transactions, such as option exercises, are a routine part of executive compensation and personal financial planning. While not directly indicative of future company performance, they provide transparency into how executives manage their equity holdings. This specific transaction reflects a director monetizing vested options, a common occurrence as options approach expiration or as part of a pre-planned trading strategy.

Stakeholder Impact

• Shareholders: Provides transparency on director's equity holdings and transactions.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction involving the exercise of stock options and subsequent share withholding for tax purposes by a director. It does not provide new information about the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. The transaction reflects a director managing personal equity holdings, which is a common occurrence and does not inherently signal a strong buy or sell opportunity for external investors. Therefore, a 'hold' recommendation is appropriate as the filing does not alter the fundamental investment thesis for Leidos Holdings, Inc.

Keywords

Leidos Holdings, LDOS, Insider Trading, Form 4, Stock Options, Director Holdings, Equity Transaction, Beneficial Ownership