Form 4: TDS Vice Chair Sells Shares After Option Exercise

Leroy T. Carlson Jr., Vice Chair and 10% owner of Telephone & Data Systems Inc., executed a series of option exercises and subsequent share sales, realizing a significant profit.

Summary

• Leroy T. Carlson Jr., a Director, 10% Owner, and Vice Chair of Telephone & Data Systems Inc. (TDS), reported transactions on August 12, 2025, and August 13, 2025.
• On August 12, 2025, Carlson exercised options to acquire a total of 111,820 Common Shares.
• These acquisitions included 18,320 shares at $25.70, 53,800 shares at $29.45, and 39,700 shares at $27.79.
• All exercised options were granted under the Long-Term Incentive Plan and were vested.
• Immediately following the option exercises on August 12, 2025, Carlson sold all 111,820 Common Shares at an average price of $38.1511, with prices ranging from $37.705 to $38.78.
• On August 13, 2025, an intra-plan transfer of 23,299 shares occurred within Carlson's TDS 401(k) plan at a price of $38.81, moving funds between the TDS Common Stock fund and another plan fund.
• Following these transactions, Carlson directly owns 369,373 Common Shares.
• Indirect beneficial ownership includes 473,113 shares, 78,943 shares, and 211,758 shares held by various trusts, and 105,521.32 shares held by his wife's trust. The 401(k) plan now holds 0 shares of TDS Common Stock after the transfer.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive for the insider due to the profitable exercise and sale of shares. For the company's stock, it's a neutral to slightly negative signal as an insider sale, but it's a routine transaction for executive compensation.

Positives

• Leroy T. Carlson Jr. realized a substantial profit by exercising stock options at lower prices (average approximately $28.25) and immediately selling the acquired shares at a higher average market price of $38.1511.
• The options exercised were fully vested, indicating a mature stage of the incentive plan.

Negatives

• The sale of 111,820 shares by a Vice Chair and 10% owner could be interpreted by some investors as a signal of reduced confidence, despite being a profitable transaction for the insider.

Future Outlook

NA

Industry Context

This filing details an individual insider transaction and does not provide broader industry context or trends. It reflects a common practice of executives exercising vested stock options and selling shares for personal liquidity or portfolio diversification.

Related Party Transactions

• An intra-plan transfer of 23,299 shares occurred within the reporting person's TDS 401(k) plan, moving funds between the TDS Common Stock fund and another plan fund.

Stakeholder Impact

• Shareholders may interpret the insider sale as a routine liquidity event or, less favorably, as a signal of reduced confidence, potentially influencing short-term trading sentiment.
• The company's long-term incentive plan is functioning as intended, allowing executives to realize value from their vested options.

Key Dates

Keywords

TDS, Telephone & Data Systems, Insider Trading, Form 4, Stock Options, Share Sale, Executive Compensation, Leroy T. Carlson Jr., Beneficial Ownership