Form 4: Varex CFO Reports Significant Stock Transactions

Varex Imaging CFO Shubham Maheshwari reported significant stock transactions, including RSU conversions and new grants, alongside a sale for tax purposes.

Summary

• Shubham Maheshwari, Chief Financial Officer of Varex Imaging Corp (VREX), reported changes in beneficial ownership of common stock and Restricted Stock Units (RSUs) on December 10, 2025.
• Maheshwari acquired 7,063 shares of common stock through the conversion of RSUs granted on February 15, 2021, which vested 50% on February 15, 2023, and 50% on February 15, 2025.
• An additional 13,966 shares of common stock were acquired from the conversion of RSUs granted on December 10, 2023, with 50% vesting on December 10, 2025.
• Maheshwari disposed of 5,227 shares of common stock at a price of $11.7 per share, likely to cover tax withholding obligations related to the RSU vesting.
• A new grant of 58,333 Restricted Stock Units was received on December 10, 2025, scheduled to vest 50% on December 10, 2027, and 50% on December 10, 2029.
• Following these transactions, Maheshwari directly beneficially owns 106,891 shares of common stock.
• The reported beneficial ownership also includes 101 shares purchased under the Varex Imaging Corporation 2017 Employee Stock Purchase Plan since the last Form 4 filing.

Sentiment

Score: 7

Explanation: The filing indicates routine insider transactions, including the vesting of previously granted restricted stock units and a new significant RSU grant, which aligns the CFO's interests with long-term shareholder value. The sale of shares is typical for tax withholding upon RSU vesting.

Positives

• A significant new grant of 58,333 Restricted Stock Units was awarded to the CFO, indicating continued long-term incentive and alignment with shareholder interests.
• The conversion of 21,029 previously granted RSUs into common stock increases the CFO's direct equity ownership in the company.
• The overall activity demonstrates ongoing executive participation in the company's equity compensation plans.

Negatives

• A disposition of 5,227 shares of common stock occurred, though this is a common practice for tax withholding upon RSU vesting and not necessarily indicative of a negative outlook.

Future Outlook

The CFO has future equity incentives tied to the company's performance, with 50% of 13,966 RSUs scheduled to vest on December 10, 2027, and 50% of the newly granted 58,333 RSUs also vesting on December 10, 2027, with the remaining 50% of the new grant vesting on December 10, 2029.

Industry Context

NA

Stakeholder Impact

• Shareholders: The transactions demonstrate continued alignment of management's interests with long-term company performance through equity incentives.
• Employees: Reflects standard executive compensation practices involving equity grants, which can serve as a benchmark for broader employee incentive programs.

Next Steps

• Scheduled vesting of 50% of 13,966 RSUs on December 10, 2027.
• Scheduled vesting of 50% of 58,333 new RSUs on December 10, 2027.
• Scheduled vesting of the remaining 50% of 58,333 new RSUs on December 10, 2029.

Key Dates

Recommendation

This Form 4 details routine compensation-related equity transactions for a key executive. It does not provide new fundamental information about the company's operational or financial performance that would warrant a change in investment recommendation. The new RSU grant is a positive for management alignment, but the overall impact on investment thesis is neutral.

Keywords

Varex Imaging Corp, VREX, Shubham Maheshwari, CFO, Restricted Stock Units, RSU, Common Stock, Beneficial Ownership, Insider Trading, Equity Compensation, Stock Vesting