Form 4: Leidos Holdings Director Robert Shapard Reports Stock Option Grant and Stock Transactions

Director Robert Shapard reports acquisition of Leidos Holdings stock options and shares, including those held indirectly through a Key Executive Stock Deferral Plan and a Family Limited Partnership.

Summary

• Robert S. Shapard, a director of Leidos Holdings, Inc., filed a Form 4 detailing changes in beneficial ownership.
• On May 3, 2024, Shapard acquired 912 shares of common stock at $0.
• Following the transaction, Shapard directly owns 54,137.08 shares.
• Shapard also indirectly owns 1,591.9359 shares through a Key Executive Stock Deferral Plan and 2,500 shares through a Family Limited Partnership.
• Additionally, Shapard acquired a stock option for 1,179 shares with an exercise price of $142.66, exercisable on the earlier of May 3, 2025, or the date of the next annual stockholder meeting, expiring on May 2, 2031.
• Following the transaction, Shapard directly owns 1,179 stock options.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of stock transactions by a company director. The acquisition of shares and options could be interpreted as a positive sign of confidence, but it's not definitively bullish.

Positives

• The acquisition of shares and stock options by a director could be seen as a positive signal, indicating confidence in the company's future performance.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders. These filings are closely watched by investors to gauge management's sentiment and confidence in the company's prospects.

Comparison to Industry Standards

• Stock option grants are a common form of executive compensation in publicly traded companies, including those in the technology and defense sectors like Leidos.
• Companies like Lockheed Martin, General Dynamics, and Northrop Grumman also utilize stock options as part of their compensation packages to align executive interests with shareholder value.
• The vesting schedules and exercise prices of these options are typically structured to incentivize long-term performance and retention.

Stakeholder Impact

• The reported transactions provide transparency to shareholders regarding the director's stake in the company.
• The stock option grants align the director's interests with those of the shareholders, incentivizing long-term value creation.

Key Dates