Richard Nottenburg, a director at Applied Digital Corp. (NASDAQ:APLD), recently sold 50,000 shares of the company's common stock. The transaction comes as Applied Digital, now valued at $2.1 billion, has seen its stock surge over 130% in the past six months. According to InvestingPro analysis, the stock currently trades above its Fair Value, with notably high price volatility. The shares were sold at a price of $9.20 each, totaling approximately $459,999. Following this transaction, Nottenburg retains ownership of 334,317 shares, which includes 300,000 shares of restricted stock granted in May 2024. These restricted shares are set to vest in equal installments over the next three years, contingent on Nottenburg's continued service as a director. According to a footnote in the filing, the sale proceeds will be used to cover income tax liabilities related to the vesting of certain restricted shares. InvestingPro subscribers have access to 17 additional ProTips and comprehensive analysis of Applied Digital's financial health, including detailed valuation metrics and growth forecasts. The company's extensive Pro Research Report offers deeper insights into its market position and future prospects.
In other recent news, Applied Digital Corporation has initiated a Series E-1 Redeemable Preferred Stock offering, aiming to raise up to $62.5 million. Concurrently, the company has priced its $375 million convertible senior notes due 2030 and initiated a share repurchase program worth approximately $84 million. The company also reported a significant revenue increase, reaching $60.7 million, primarily due to 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 have upgraded their stock price targets for Applied Digital, acknowledging its robust revenue growth and key project progress. The company simplified its capital structure by withdrawing the designations of its Series A, Series B, and Series D Convertible Preferred Stock. In terms of executive changes, Saidal Mohmand has assumed the role of Chief Financial Officer, with David Rench transitioning to the role of Chief Administrative Officer.
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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