Form 4: Applied Materials SVP Sells $950K in Stock

Applied Materials' Senior Vice President and Chief Legal Officer, Teri A. Little, reported the sale of 4,000 shares of common stock for approximately $952,942.

Summary

• Teri A. Little, Senior Vice President and Chief Legal Officer of Applied Materials, Inc. (AMAT), sold 4,000 shares of the company's common stock.
• The transaction occurred on November 25, 2025, at a price of $238.2355 per share, totaling approximately $952,942.
• This sale was executed pursuant to a Rule 10b5-1(c) pre-arranged trading plan.
• Following this transaction, Ms. Little beneficially owns 84,351 shares of Applied Materials common stock.
• The remaining beneficial ownership includes 57,492 unvested performance share units (PSUs) and restricted stock units (RSUs).
• Specifically, 22,730 restricted stock units are scheduled to vest in installments from December 2025 through 2027.
• Additionally, 34,762 performance share units (representing the target amount) are scheduled to vest in installments from December 2025 through 2027, with the actual number of shares vesting ranging from 0% to 200% of the target based on achievement of specified performance goals and continued employment.

Sentiment

Score: 5

Explanation: The sale is a routine insider transaction under a pre-arranged 10b5-1 plan, which mitigates negative sentiment typically associated with insider selling. The executive retains substantial equity holdings, including unvested units.

Positives

• The sale was conducted under a Rule 10b5-1(c) plan, indicating a pre-scheduled transaction rather than a reactive sale based on new, non-public information.
• The reporting person retains a significant beneficial ownership of 84,351 shares, including substantial unvested equity, aligning her interests with long-term shareholder value.

Negatives

• An insider sale, even under a 10b5-1 plan, reduces the direct equity stake of a senior executive in the company.

Risks

• Potential for negative market perception if investors misinterpret the sale as a lack of confidence, despite the 10b5-1 plan.

Future Outlook

The reporting person has significant unvested equity, including 22,730 restricted stock units and 34,762 performance share units, scheduled to vest in installments from December 2025 through 2027, subject to continued employment and performance goals for PSUs.

Stakeholder Impact

• Shareholders: Minor impact; a routine insider sale under a 10b5-1 plan is generally not a significant signal of company health, but it does represent a reduction in direct insider ownership.
• Employees: No direct impact mentioned.

Next Steps

• Continued vesting of 22,730 restricted stock units in installments through 2027.
• Continued vesting of 34,762 performance share units (target amount) in installments through 2027, contingent on performance goals and continued employment.

Key Dates

Recommendation

This Form 4 reports a routine insider stock sale executed under a pre-arranged 10b5-1 plan. Such transactions are typically not indicative of a change in the company's fundamental outlook or management's confidence. The executive retains a substantial equity position, including significant unvested awards. Therefore, this filing alone does not warrant a change in investment thesis, and a 'hold' recommendation is appropriate based solely on this information.

Keywords

Applied Materials, AMAT, Insider Sale, Form 4, Executive Compensation, Stock Transaction, 10b5-1 Plan, Teri A. Little, Semiconductor Industry