Form 4: Applied Industrial Exec Exercises SARs, Sells Shares

Applied Industrial Technologies VP-Chief HR Officer Kurt W. Loring exercised stock appreciation rights and sold shares to cover associated costs and taxes.

Summary

• Kurt W. Loring, VP-Chief HR Officer of Applied Industrial Technologies Inc. (AIT), engaged in transactions involving the company's common stock.
• On August 20, 2025, Mr. Loring acquired 12,100 shares of common stock at an exercise price of $48.19 per share through the exercise of Stock Appreciation Rights (SARs).
• Following this acquisition, his direct beneficial ownership of common stock was 32,276 shares.
• On the same date, 4,480 shares of common stock were disposed of at a price of $262.46 per share. These shares were withheld by the Registrant to cover the cost of exercising the SARs and to satisfy tax withholding obligations.
• After the disposal, Mr. Loring's direct beneficial ownership of common stock was 27,796 shares.
• Additionally, Mr. Loring indirectly owns 33.321 shares of common stock through a Retirement Savings Plan.
• The Stock Appreciation Rights exercised were granted on August 11, 2017, and are set to expire on August 11, 2026.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing reports a routine executive compensation transaction (exercise of SARs and sell-to-cover) which is an expected part of an executive's compensation plan and does not reflect new operational or financial performance.

Positives

• The exercise of Stock Appreciation Rights indicates that the underlying stock value has appreciated significantly since the grant date, allowing the executive to realize value from their compensation.
• The transaction is a routine part of executive compensation, demonstrating the company's established incentive programs are functioning as intended.

Negatives

• A portion of shares (4,480) was sold, which reduces the executive's direct ownership, although this was primarily to cover exercise costs and tax obligations rather than a discretionary sale.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance.

Industry Context

This Form 4 filing details a routine insider transaction related to executive compensation. Such transactions are common across all industries as executives exercise stock options or appreciation rights and often sell a portion of the acquired shares to cover taxes and exercise costs. It does not provide specific insights into broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: The transaction is a routine insider compensation event and is unlikely to have a significant direct impact on the company's share price or long-term value. It reflects the executive realizing value from previously granted incentives.
• Employees: No direct impact on employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Key Dates

Keywords

AIT, APPLIED INDUSTRIAL TECHNOLOGIES, Form 4, insider transaction, stock appreciation rights, executive compensation, share disposal, share acquisition