Form 4: Leidos Director Exercises Options, Sells Shares

Leidos Holdings, Inc. Director Gregory R. Dahlberg exercised stock options, acquiring 2,948 shares, and subsequently disposed of 2,948 shares through tax withholding and open market sales.

Summary

• Director Gregory R. Dahlberg engaged in multiple transactions on August 11, 2025, involving Leidos Holdings, Inc. common stock and stock options.
• Exercised stock options to acquire 1,769 shares of common stock at an exercise price of $104.06 per share.
• Exercised additional stock options to acquire 1,179 shares of common stock at an exercise price of $142.66 per share.
• A total of 1,996 shares were withheld by the issuer at $176.50 per share to cover the exercise price and associated fees.
• Sold 952 shares of common stock on the open market at a weighted average price of $177.4276 per share, with individual sales ranging from $177.40 to $177.45.
• Following these transactions, beneficial ownership of common stock is 21,068 shares.
• One stock option grant (underlying 1,769 shares) was fully exercised, resulting in 0 remaining options of that type.
• Another stock option grant (underlying 1,179 shares) was partially exercised, with 1,179 derivative securities of that type still beneficially owned.

Sentiment

Score: 5

Explanation: Neutral. The filing reports routine insider transactions (option exercise, tax withholding, and a partial sale). While a sale occurred, it is often part of a pre-planned strategy or for liquidity/tax purposes following option exercise. The director still holds a significant number of shares.

Positives

• Director exercised stock options, indicating a realization of value from previously granted equity compensation.
• The exercise prices ($104.06 and $142.66) are significantly lower than the sale price ($177.4276), indicating a profitable transaction for the director.

Negatives

• The director sold 952 shares on the open market, which represents a reduction in direct equity exposure to the company's stock.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: May interpret the director's sale as a slight reduction in direct insider exposure, though it is common for insiders to sell shares after exercising options for tax or diversification purposes. The director still retains a significant stake in the company.

Key Dates

Recommendation

The filing details routine insider transactions by a director, involving the exercise of stock options and subsequent sale of a portion of the acquired shares, likely for tax purposes or diversification. While a sale occurred, it is not indicative of a change in the company's fundamental outlook. The director retains a substantial holding. This type of filing typically does not provide new information warranting a change in investment thesis, thus a 'hold' recommendation is appropriate.

Keywords

Leidos Holdings, LDOS, Insider Trading, Stock Options, Director Transactions, SEC Form 4, Equity Sales, Executive Compensation