Richard N. Nottenburg, a director at Applied Digital Corp. (NASDAQ:APLD), recently sold 80,000 shares of the company's common stock. The transactions, executed on October 14, 2024, were carried out at an average price of $7.368 per share, resulting in a total sale value of approximately $589,440.
According to the SEC filing, the proceeds from these sales are primarily intended to cover income tax liabilities associated with the vesting of certain securities. Following these transactions, Nottenburg retains ownership of 433,686 shares in the company, which includes 33,685 shares of restricted stock granted for his service as a non-employee director. These shares are set to vest in full by November 9, 2024.
Additionally, Nottenburg was granted 300,000 shares of restricted stock in May 2024 for his role as Chairman of the board of directors of Applied Digital Cloud Corporation, a subsidiary of Applied Digital Corp. Of these, 100,000 shares will vest annually over three years, contingent upon his continued service as a director.
In other recent news, Applied Blockchain Inc reported a significant 67% revenue increase in the first quarter of 2025, reaching $60.7 million, primarily due to strong performance in data center hosting and cloud services. Despite this surge, the company experienced an adjusted net loss of $21.6 million. Analyst firms H.C. Wainwright, Lake Street Capital Markets, Craig-Hallum, and Needham have all recently adjusted their price targets for Applied Blockchain, citing the company's revenue growth and swift progress on construction projects.
Applied Blockchain is also nearing the completion of a high-performance computing lease with a major hyperscaler, which is currently 98% finalized. This development, along with the company's strategic investments and progress on its Ellendale HPC campus construction, have been highlighted as positive steps.
In executive changes, Saidal Mohmand has taken over as Chief Financial Officer, with David Rench transitioning to the role of Chief Administrative Officer. These are the recent developments for Applied Blockchain, which continues to make steady progress on its current projects and strategic investments, despite facing a net loss.
InvestingPro Insights
As Applied Digital Corp. (NASDAQ:APLD) experiences insider selling, it's crucial to consider the company's financial metrics and market performance. According to InvestingPro data, APLD's market capitalization stands at $1.57 billion, reflecting its current position in the market.
The company has shown impressive revenue growth, with a 124.03% increase in the last twelve months as of Q1 2025. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. Such robust growth could potentially offset concerns about insider selling, as it suggests the company is expanding its operations successfully.
However, investors should note that APLD's gross profit margin is only 3.04%, which is relatively low. This corresponds with an InvestingPro Tip highlighting that the company suffers from weak gross profit margins. This metric may be a point of concern for potential investors, as it could impact the company's long-term profitability.
The stock's recent performance has been strong, with a 38.55% price return over the past month and a remarkable 235.42% return over the last six months. These figures align with another InvestingPro Tip stating that APLD has shown strong returns over various time frames.
It's worth noting that InvestingPro offers 17 additional tips for Applied Digital Corp., providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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