Form 4: AppLovin Corp CFO Matthew Stumpf Reports Tax-Related Share Withholding and Stock Plan Acquisition
SEC Form 4
Chief Financial Officer of AppLovin Corp, Matthew Stumpf, reports withholding of shares to cover tax obligations related to vesting of Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PSUs), along with a small acquisition under the Employee Stock Purchase Plan.
Summary
- On May 20, 2024, Matthew Stumpf, the CFO of AppLovin Corp, reported a transaction involving Class A Common Stock.
- 47,819 shares were withheld by the issuer to cover income tax obligations related to the vesting and net settlement of previously reported Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PSUs).
- This was not a sale of shares by the reporting person but a withholding by the company to cover tax obligations.
- Stumpf also acquired 628 shares under the AppLovin Corporation Employee Stock Purchase Plan on May 20, 2024.
- Following the reported transaction, Stumpf beneficially owns 315,073 shares of Class A Common Stock, including those represented by RSUs and PSUs.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation and employee benefits, with no indication of significant positive or negative developments.
Positives
- The CFO's participation in the Employee Stock Purchase Plan indicates confidence in the company's future.
Industry Context
Form 4 filings are standard practice for company insiders and provide transparency into their transactions, which can be indicative of their sentiment towards the company's prospects. This filing shows routine transactions related to compensation and employee benefits.
Comparison to Industry Standards
- Tax withholding on vesting equity is a standard practice across publicly traded companies, including peers like Unity Software and ironSource.
- Employee Stock Purchase Plans are also common, offering employees a discounted way to acquire company stock, similar to plans offered by companies like Google (Alphabet Inc.) and Meta Platforms.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they involve a small number of shares relative to the total outstanding.
Key Dates
| Date | Description |
|---|---|
| 05/20/2024 | Date of transaction: withholding of shares for tax obligations and acquisition of shares under the Employee Stock Purchase Plan |
| 05/22/2024 | Date of signature for the Form 4 filing |
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