Form 4: Applied Materials CFO Brice Hill Sells 20,000 Shares

Applied Materials' CFO, Brice Hill, sold 20,000 shares of common stock at an average price of $222.34 on May 28, 2024.

Summary

• On May 28, 2024, Brice Hill, the SVP and CFO of Applied Materials, Inc., sold 20,000 shares of the company's common stock.
• The sale was executed at a weighted average price of $222.34 per share, with individual transactions ranging from $222.07 to $222.79.
• Following the transaction, Hill directly owns 108,356 shares of Applied Materials common stock.
• This number includes 98,931 performance share units and restricted stock units that will convert into common stock upon vesting in the future.
• Vesting of these units is contingent upon continued employment and the achievement of specific performance goals.

Sentiment

Score: 5

Explanation: This is a neutral disclosure of a stock sale by an executive. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Positives

• The document provides detailed information about the transaction, including the price range and the number of shares sold.
• The document clarifies the executive's remaining holdings, including restricted stock units and performance share units.

Future Outlook

The document mentions future vesting dates for restricted stock units and performance share units, contingent on continued employment and achievement of performance goals.

Industry Context

Executive stock sales are common and are often scrutinized by investors for insights into management's perspective on the company's future prospects. This sale by the CFO could be interpreted in various ways, but without additional context, it's difficult to determine the specific reason behind the transaction.

Comparison to Industry Standards

• Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
• The vesting schedules and performance-based criteria mentioned in the document are typical components of such compensation plans.
• Comparing the vesting schedules and performance metrics to those of peer companies like ASML, Lam Research, and Tokyo Electron would provide a better understanding of Applied Materials' compensation practices relative to industry standards.

Stakeholder Impact

• The stock sale could have a minor impact on shareholders, depending on how the market interprets the transaction.
• The vesting of restricted stock units and performance share units impacts the CFO's compensation and alignment with shareholder interests.
• Employees holding company stock may be interested in the details of executive stock transactions.

Key Dates