Form 4: AMAT Director Chen Acquires RSUs from Dividends

Applied Materials Director Xun Chen reported the acquisition of 187 restricted stock units derived from accrued dividends, deferring their conversion into common stock until his board service termination.

Summary

• Director Xun Chen of Applied Materials, Inc. (AMAT) acquired 187 restricted stock units (RSUs) on December 31, 2025.
• These RSUs were automatically acquired from dividends accrued on previously vested RSUs.
• The acquisition was based on a share value of $256.99, the closing price of AMAT common stock on the transaction date.
• Dr. Chen has elected to defer the conversion of these RSUs into common stock until his termination of service from the Applied Materials Board of Directors.
• Following this transaction, Dr. Chen beneficially owns 45,229 shares, which includes 27,360 vested RSUs and 1,583 RSUs scheduled to vest in March 2026, all subject to the same deferral election.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. It's a routine insider transaction, but the director's equity stake increased, which can be seen as a minor positive for alignment with shareholders. No significant operational or financial news.

Positives

• Director Chen's beneficial ownership of Applied Materials common stock and restricted stock units increased by 187 units.
• The acquisition of RSUs from dividends indicates a return on existing equity holdings for the director.

Future Outlook

The filing indicates that 1,583 restricted stock units are scheduled to vest in March 2026, contingent on Dr. Chen's continued service as a director. All deferred RSUs will convert to common stock upon his termination of service from the Board.

Industry Context

This is a routine insider transaction disclosure for a director of a major semiconductor equipment company. Such transactions are common for executive and director compensation plans, often involving restricted stock units and dividend reinvestment, and do not typically reflect a change in the company's operational or strategic direction.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: Minor positive impact due to increased alignment of a director's interests with shareholders through increased equity ownership.
• Employees: No direct impact mentioned.
• Customers/Suppliers/Creditors: No direct impact mentioned.

Next Steps

• 1,583 restricted stock units are scheduled to vest in March 2026, subject to continued service as a director.
• All deferred restricted stock units will be converted into shares of Applied Materials common stock and paid to Dr. Chen upon his termination of service from the Board of Directors.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction where a director acquired additional restricted stock units from accrued dividends. It does not contain any new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction is an expected part of director compensation and does not indicate a significant shift in the company's outlook or valuation.

Keywords

Applied Materials, AMAT, Xun Chen, Form 4, Restricted Stock Units, RSU, Insider Transaction, Director Compensation, Dividend Reinvestment, Equity Compensation