Form 4: Applied Materials SVP, CLO Teri A. Little Sells 7,500 Shares

Teri A. Little, SVP, CLO of Applied Materials, Inc., sold 7,500 shares of common stock at an average price of $213.02 on May 31, 2024.

Summary

• Teri A. Little, the SVP, CLO of Applied Materials, Inc., reported a transaction involving the company's common stock on May 31, 2024.
• She sold 7,500 shares at a weighted average price of $213.02, with individual transactions ranging from $213.02 to $213.06.
• Following the transaction, Little directly owns 78,712 shares of Applied Materials common stock.
• This number includes 53,097 performance share units and restricted stock units that will convert into common stock upon vesting in the future.
• 21,893 restricted stock units are scheduled to vest in installments from December 2024 through 2026.
• 31,204 performance share units are scheduled to vest in installments from December 2024 through 2026, with the actual number of shares vesting potentially ranging from 0% to 200% of the target amount based on performance goals.

Sentiment

Score: 5

Explanation: Neutral sentiment as it's a standard disclosure of an insider transaction. There's no indication of positive or negative implications for the company's performance.

Positives

• The increased number of shares reflects periodic payroll acquisitions under Employees' Stock Purchase Plan that are exempt under Rule 16a-3 and Rule 16b-3.

Future Outlook

The document outlines the vesting schedule for restricted stock units and performance share units from December 2024 through 2026, contingent on continued employment and achievement of performance goals.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions, providing transparency to investors regarding the actions of company executives. It's common for executives to periodically sell shares for personal financial management.

Comparison to Industry Standards

• Executive stock sales are a common occurrence in publicly traded companies like Applied Materials.
• Companies such as Intel (INTC), Taiwan Semiconductor Manufacturing (TSM), and ASML Holding (ASML) also regularly report similar insider transactions.
• The size and frequency of these transactions are generally in line with industry norms for executive compensation and stock ownership.

Stakeholder Impact

• The stock sale may have a minor impact on shareholders due to the increased supply of shares in the market, but the effect is likely minimal given the relatively small number of shares sold.
• There is no direct impact on employees, customers, suppliers, or creditors.

Key Dates