Form 4: Avery Dennison SVP Allouche Reports Equity Transactions

Avery Dennison's SVP & CSDO, Danny Gilad Allouche, reported multiple acquisitions and disposals of common stock and vesting of various equity awards on March 1, 2026.

Summary

• Danny Gilad Allouche, SVP & CSDO of Avery Dennison Corp (AVY), reported multiple transactions on March 1, 2026.
• Acquired a total of 2,435 shares of common stock through the exercise/vesting of various equity awards.
• Disposed of a total of 988 shares of common stock, likely for tax withholding purposes, at a price of $194.78 per share.
• Net increase in indirectly held common stock (via Trust) by 1,447 shares, bringing the total to 23,153 shares.
• Received new grants of 2,183 Restricted Stock Units (RSUs) and 3,157 Performance Units (PUs).
• Vesting percentages for various MSU awards ranged from 92% to 96% of target, based on absolute total stockholder return.
• The 2023 PU Award vested at 56% of target, influenced by cumulative economic value added (0% of target) and relative total stockholder return (112% of target).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively as it reflects the vesting of performance-based equity awards at strong percentages, indicating successful achievement of company performance targets, and a net increase in the executive's beneficial ownership.

Positives

• Significant vesting of various equity awards (MSUs and PUs), indicating achievement of performance targets.
• Acquisition of new Restricted Stock Units (RSUs) and Performance Units (PUs) totaling 5,340 derivative securities, aligning management incentives with shareholder value.
• Net increase in beneficial ownership of common stock by 1,447 shares, demonstrating continued confidence in the company.
• MSU awards vested at high percentages (92-96% of target) based on absolute total stockholder return, suggesting strong stock performance during the respective performance periods.
• The relative total stockholder return component of the 2023 PU Award achieved 112% of target.

Negatives

• Disposal of 988 shares of common stock, likely for tax withholding, which reduces direct share accumulation.
• The cumulative economic value added component of the 2023 PU Award achieved 0% of target, indicating underperformance in that specific metric.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that Form 4 filings are routine disclosures of insider transactions and typically do not provide broader industry context. However, the vesting of performance-based awards at high percentages (92-96% for MSUs) suggests that Avery Dennison's stock performance has been strong relative to its internal targets during the respective performance periods, which could indicate a positive trend within its sector or strong company-specific execution.

Stakeholder Impact

• Shareholders: The vesting of performance-based awards at high percentages suggests that the company has met or exceeded certain performance targets, which is generally positive for shareholder value. The executive's net increase in beneficial ownership aligns their interests with shareholders.
• Employees: The grant and vesting of equity awards are part of executive compensation, which can influence overall compensation philosophy and morale.

Next Steps

• Vesting of 2026 RSU Award: 25% on each of the first, second, third, and fourth anniversaries of the grant date (starting 03/01/2027).
• Vesting of 2026 PU Award: At the end of fiscal year 2028, provided certain performance objectives are met as determined by the Compensation Committee in February 2029.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to equity award vesting and associated tax disposals, along with new grants. While the vesting percentages indicate strong past performance against internal targets and the executive's beneficial ownership increased, these are standard compensation events and do not provide new fundamental information to warrant a change in investment recommendation. The filing reinforces alignment between management and shareholders but does not present a catalyst for a 'buy' or 'sell' decision based solely on this information.

Keywords

Avery Dennison, AVY, Insider Trading, Form 4, Equity Awards, RSU, MSU, Performance Units, Stock Transactions, Executive Compensation, Danny Gilad Allouche