Semtech (SMTC) CEO Hou Hong Q Exercises Stock Units, Sells Shares

What Happened

• Hou Hong Q, President, CEO and a director of Semtech (SMTC), converted 8,130 contingent stock units into common shares on Sep 10, 2026 (exercise/conversion, code M). The units converted at $0.00 (no exercise price), consistent with restricted stock units (RSUs) rather than option strikes.
• To satisfy tax withholding, 4,137 of the newly issued shares were disposed (withheld) at an effective price of $163.94 per share, generating proceeds of $678,220 (transaction code F). The filing shows the conversion and the withholding occurred the same day.

Key Details

• Transaction date: 2026-09-10; Form 4 filed: 2026-09-14 (filed timely).
• Converted: 8,130 stock units → 8,130 shares (acquired at $0.00).
• Withheld/taxed: 4,137 shares withheld at $163.94 → $678,220 (disposed).
• Shares owned after the transaction: not specified in the provided filing details.
• Footnotes: F1 — each stock unit represents the contingent right to receive one share of Semtech common stock. F2 — vesting schedule: one-third vested Mar 10, 2026; remaining vests in eight quarterly installments beginning Jun 10, 2026.
• Transaction codes: M = exercise/conversion of derivative (RSU); F = payment of tax liability via share withholding.

Context

• This appears to be a routine RSU vesting and tax-withholding event (cashless settlement), not an open-market sale. Withholding shares to cover taxes is common and does not necessarily signal a directional bet by the insider.
• No indication of a 10b5-1 plan or gift; the activity is tied to vesting per the grant schedule.