AppLovin (APP) Director Herald Chen Converts Derivatives, Gifts 100K

What Happened

• Herald Y. Chen, a director of AppLovin Corp (APP), reported conversions of derivative securities and gift transfers on August 13, 2026. The filing shows conversion/acquisition of 143,791 shares (derivative conversion) at $0.00 and corresponding derivative disposal entries; and a 100,000‑share gift disposition alongside a 100,000‑share gift acquisition (both reported at $0.00). No cash was shown as exchanged in these transactions.

Key Details

• Transaction date: 2026-08-13; Form 4 filed: 2026-08-14 (timely within SEC rules).
• Conversions: 143,791 shares acquired via conversion of derivative security (reported price $0.00); a corresponding derivative disposal entry for 143,791 shares is also reported.
• Gifts: 100,000 shares disposed as a gift and 100,000 shares acquired as a gift (both $0.00).
• Shares owned after transaction: not specified in the provided excerpt of the filing.
• Notable footnotes:
  • F1: Some securities represented by Restricted Stock Units (RSUs).
  • F2–F3: Certain shares are held by the reporting person’s spouse and The Chen Family 2012 Irrevocable Trust.
  • F4–F5: Some shares were contributed to grantor retained annuity trusts (GRATs) in March 2026 in transactions exempt under Rule 16a‑8(b)(2); prior filings inadvertently reflected those shares as directly held.
  • F6: Class B common shares are exchangeable into Class A on certain events or at the holder’s option.
• No indication of a selling-for-cash open‑market sale or a 10b5‑1 plan in the filing excerpt.

Context

• “Conversion of derivative security” commonly means vested RSUs or other convertible instruments were converted into common shares; the filing lists these as $0, indicating no purchase price was paid at conversion in the reported entries.
• Gifts are transfers for estate/planning or personal reasons and do not necessarily reflect insider sentiment about the company’s stock price.
• The filing’s footnotes clarify holdings in spouse/trust accounts and that some transfers to GRATs were previously misreported and are exempt Rule 16a‑8(b)(2) transactions.