Form 4: Applied Industrial Technologies Executive Acquires and Disposes of Shares

Jason W. Vasquez, VP-Sales & Marketing-USSC at Applied Industrial Technologies, reports acquisition and disposal of company stock and derivative securities.

Summary

• On August 13, 2024, Jason W. Vasquez, VP-Sales & Marketing-USSC at Applied Industrial Technologies, engaged in transactions involving the company's stock.
• Vasquez acquired 548 shares of common stock, 2,801 performance shares, and 1,796 stock appreciation rights.
• He also disposed of 1,769 shares to cover tax withholding obligations related to vesting performance shares at a price of $197.43 per share.
• Following these transactions, Vasquez directly owns 21,697 shares of common stock and indirectly owns 849.4409 shares through a Retirement Savings Plan.
• He also holds 1,796 stock appreciation rights exercisable in annual increments starting August 13, 2025, and expiring on August 13, 2034.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are part of a standard compensation package and do not indicate any significant positive or negative outlook.

Positives

• The acquisition of restricted stock units and performance shares indicates a belief in the company's future performance.
• The granting of stock appreciation rights aligns the executive's interests with those of shareholders.

Negatives

• The disposal of shares to cover tax obligations, while routine, slightly reduces the executive's direct holdings.

Industry Context

Form 4 filings are standard 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

• Executive compensation packages often include a mix of salary, bonus, stock options, and restricted stock units.
• The vesting schedules and terms of the stock appreciation rights and performance shares are typical for executive compensation plans in publicly traded companies.
• Companies like Motion Industries and DXP Enterprises, which are competitors of Applied Industrial Technologies, also use similar equity-based compensation to incentivize their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect routine executive compensation and tax obligations.
• Employees may be indirectly affected by the executive's incentives to improve company performance.

Key Dates