Semtech CEO exercises RSUs, shares withheld for taxes
Semtech Corp President and CEO Hong Q. Hou reported routine equity compensation activity involving company stock.
Rhea-AI Filing Summary
Semtech Corp President and CEO Hong Q. Hou reported routine equity compensation activity involving company stock. On July 1, 2026, he exercised 6,484 Restricted Stock Units, receiving the same number of Semtech common shares as part of his compensation.
To satisfy related tax obligations, 3,300 common shares were withheld at a price of $161.85 per share, a non-market "F" code tax-withholding disposition rather than an open-market sale. After these transactions, he directly holds 66,799 shares of common stock and 25,933 Restricted Stock Units, which represent additional shares that may be delivered as they vest over time.
Positive
- None.
Negative
- None.
Insider Trade Summary
6,484 shares exercised/converted
Exercise
3 txns
Insider
HOU HONG Q
Role
President and CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Unit | 6,484 | $0.00 | $0.00 |
| Exercise | Common Stock | 6,484 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 3,300 | $161.85 | $534K |
Holdings After Transaction:
Restricted Stock Unit — 25,933 contracts (Direct);
Common Stock — 66,799 shares (Direct)
Footnotes (2)
- F1. Each stock unit represents the contingent right to receive one share of Semtech common stock.
- F2. One third of this grant vested on July 1, 2025 and the remainder of this grant vests in eight quarterly installments beginning on October 1, 2025.
Key Figures
RSUs converted: 6,484 shares
Tax-withheld shares: 3,300 shares
Withholding price: $161.85 per share
+2 more
5 metrics
RSUs converted
6,484 shares
Restricted Stock Units converted to Semtech common stock on July 1, 2026
Tax-withheld shares
3,300 shares
Common shares withheld to cover tax obligations at $161.85 per share
Withholding price
$161.85 per share
Value used for 3,300-share tax-withholding disposition
Common shares held
66,799 shares
Direct Semtech common stock ownership after reported transactions
RSUs remaining
25,933 units
Restricted Stock Units held after the conversion transaction
Key Terms
Restricted Stock Unit, tax-withholding disposition, derivative security, equity compensation
4 terms
Restricted Stock Unit financial
"The Form 4 shows a conversion of 6,484 Restricted Stock Units into 6,484 shares of Semtech common stock."
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
tax-withholding disposition financial
"The 3,300-share "F" code transaction is a tax-withholding disposition, where shares are withheld by the company to pay taxes."
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
derivative security financial
"The Form 4 describes code "M" as an exercise or conversion of a derivative security related to the Restricted Stock Units."
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
equity compensation financial
"He converted 6,484 Restricted Stock Units into Semtech common shares as part of his equity compensation."
Equity compensation is pay given to employees, executives or contractors in the form of company ownership—such as stock, stock options or restricted shares—rather than just cash. It matters to investors because it can align workers' incentives with shareholders (like paying someone in slices of the same pie they help grow), but it also increases the number of shares outstanding and company expenses, affecting ownership percentages and earnings per share.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Semtech (SMTC) CEO Hong Q. Hou report in this Form 4?
Hong Q. Hou reported routine equity compensation activity. He converted 6,484 Restricted Stock Units into Semtech common shares and had 3,300 of those shares withheld to cover tax obligations, with no open-market stock purchases or sales disclosed in this filing.
What is the size of the Restricted Stock Unit conversion in the Semtech (SMTC) Form 4?
The Form 4 shows a conversion of 6,484 Restricted Stock Units into 6,484 shares of Semtech common stock. This reflects the vesting and settlement of part of a prior equity award granted to the CEO as part of his compensation package.
AI-generated analysis. How Rhea-AI works. Not financial advice.
