Form 4: Applied Materials Executive Sells Shares to Cover Tax Obligations

An Applied Materials executive, Prabu G. Raja, sold 23,451 shares of common stock to cover tax obligations related to vesting equity awards.

Summary

• Prabu G. Raja, President of the Semiconductor Products Group at Applied Materials, sold 23,451 shares of common stock on December 19, 2024.
• The sale was executed at a price of $161.44 per share.
• This transaction was to cover tax withholding obligations related to the vesting of equity awards.
• Following the transaction, Raja beneficially owns 489,844 shares of Applied Materials common stock.
• This total includes 151,783 performance share units and restricted stock units that will convert to common stock upon vesting in the future.
• The vesting of these units is scheduled in installments from December 2025 through 2027 and October 2025.
• The actual number of performance share units that vest can range from 0% to 200% of the target amount, depending on performance goals.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing an executive's stock sale for tax purposes. It doesn't indicate any positive or negative sentiment about the company's performance or future outlook.

Future Outlook

The document outlines the vesting schedule for performance share units and restricted stock units, which are scheduled to vest in installments from December 2025 through 2027 and October 2025. The actual number of performance share units that vest depends on the achievement of specified performance goals.

Industry Context

This is a routine filing related to executive stock transactions and is common in publicly traded companies. It provides transparency into the holdings and transactions of company insiders.

Comparison to Industry Standards

• Executive stock transactions are a common practice in publicly traded companies, particularly in the technology sector.
• Companies like Intel (INTC), Taiwan Semiconductor Manufacturing Company (TSM), and ASML (ASML) also have similar reporting requirements for their executives' stock transactions.
• The vesting schedules and performance-based equity awards are standard compensation practices to align executive interests with company performance.

Stakeholder Impact

• The stock sale by an executive may have a minor impact on the stock price, but it is generally considered a routine transaction.
• The vesting of equity awards aligns executive interests with shareholder value.

Key Dates

Keywords

Applied Materials, AMAT, insider trading, stock sale, equity awards, executive compensation, semiconductor, Prabu G. Raja, vesting, performance share units, restricted stock units