In a recent transaction, Wes Cummins (NYSE:CMI), CEO and Chairman of Applied Digital Corp. (NASDAQ:APLD), sold 200,000 shares of the company's common stock. The shares were sold at a price of $9.20 each, totaling approximately $1.84 million. The sale comes as Applied Digital's stock has shown remarkable momentum, with a 133% surge over the past six months and a current market capitalization of $2.1 billion. According to InvestingPro analysis, the stock is currently trading above its Fair Value. Following this sale, Cummins retains direct ownership of 3,875,955 shares, which includes 742,166 shares held in his IRA.
Additionally, Cummins holds indirect ownership of 17,590,238 shares through Cummins Family Ltd., where he serves as CEO, and 1,626,453 shares through 272 Capital, LLC, where he is the President. The proceeds from this stock sale are intended to cover the income tax liability related to the vesting of certain restricted stock units.
In other recent news, Applied Digital Corp. has initiated a Series E-1 Preferred Stock offering, aiming to raise up to $62.5 million. The company also announced the pricing of its $375 million convertible senior notes due 2030 and initiated a share repurchase program worth approximately $84 million. In financial highlights, Applied Digital reported a significant revenue increase to $60.7 million, driven mainly by its cloud services and 286MW North Dakota BTC facilities, despite a net loss of $21.6 million.
Analyst firms H.C. Wainwright, Lake Street Capital Markets, and Craig-Hallum upgraded their stock price targets for Applied Digital, acknowledging its robust revenue growth and key project progress. The company has also simplified its capital structure by withdrawing the designations of its Series A, Series B, and Series D Convertible Preferred Stock.
In executive changes, Saidal Mohmand has assumed the role of Chief Financial Officer, with David Rench transitioning to the role of Chief Administrative Officer. In addition, Applied Digital is nearing the completion of a high-performance computing lease with a major hyperscaler and has secured a $160 million private placement, which included investments from Nvidia (NASDAQ:NVDA) and Related Companies. These are among the recent developments for Applied Digital as it continues to progress on its current projects and strategic investments.
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