Form 4: Telos Director Sells Over 74,000 Shares

Telos Corp Director Fredrick Schaufeld sold 74,821 shares of common stock in early December through pre-arranged trading plans.

Summary

• Fredrick Schaufeld, a Director and 10% Owner of Telos Corp, reported sales of common stock.
• On December 3, 2025, 63,743 shares were sold at a weighted average price of $5.64 per share, with prices ranging from $5.60 to $5.68.
• On December 4, 2025, an additional 11,078 shares were sold at a weighted average price of $5.60 per share, with prices ranging from $5.60 to $5.63.
• The total number of shares sold across both transactions was 74,821.
• These transactions were executed pursuant to a Rule 10b5-1(c) trading plan.
• Following these transactions, the reporting person no longer has a reportable beneficial ownership interest in shares held by the Jacob A. Schaufeld Irr Trust, Haley E. Schaufeld Irr Trust, and Max R. Schaufeld Irr Trust, and will cease reporting these shares in future ownership reports.
• Remaining indirect beneficial ownership includes 1,100,957 shares via Fredrick D. Schaufeld Rev Trust, 181,498 shares via River Farm Investments, LLC, and 250,000 shares via FDS New River Farm 2017 Irrevocable Trust. Direct beneficial ownership is 251,818 shares.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to significant insider selling by a director and 10% owner. While the sales were under a 10b5-1 plan, which mitigates the immediate negative signal, large insider sales can still be interpreted as a lack of strong conviction in the company's short-term growth prospects.

Positives

• The sales were conducted under a Rule 10b5-1(c) trading plan, indicating they were pre-scheduled and not necessarily a reaction to immediate negative developments.

Negatives

• A director and 10% owner sold a significant number of shares (74,821 shares).
• Insider selling can sometimes be interpreted as a lack of confidence in the company's near-term prospects, even if pre-scheduled.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Fredrick Schaufeld, a Director and 10% Owner of Telos Corp, sold shares of the company's common stock. This constitutes an insider transaction.

Stakeholder Impact

• Shareholders may view the insider selling as a negative signal, potentially leading to downward pressure on the stock price.

Next Steps

• The reporting person will no longer report beneficial ownership interests in shares held by the Jacob A. Schaufeld Irr Trust, Haley E. Schaufeld Irr Trust, and Max R. Schaufeld Irr Trust in future ownership reports.

Key Dates

Recommendation

While the sales were pre-planned under a 10b5-1 plan, significant insider selling by a director and 10% owner, especially when the stock price is not at an all-time high, can signal that the insider believes the current valuation is fair or even rich, or that they foresee limited upside in the near term. This action, from a highly informed individual, suggests a cautious stance on the stock.

Keywords

Telos Corp, TLS, Fredrick Schaufeld, Insider Selling, Form 4, Beneficial Ownership, Stock Sale, Director Transaction, 10b5-1 Plan