Applied Energetics, Inc. (OTC:AERG), a company specializing in advanced defense and security technologies, has reported that its President and CEO, Gregory James Quarles, sold shares in the company. According to the latest filings, Quarles sold 9,500 shares of common stock at prices ranging from $1.67 to $1.74, with the weighted average price per share being $1.72. The total value of the shares sold by Quarles amounted to approximately $16,340.
The transactions took place on June 21, 2024, and were disclosed in a regulatory filing with the U.S. Securities and Exchange Commission dated June 25, 2024. In addition to the sale, the CEO also acquired 9,500 shares of Applied Energetics common stock at a price of $0.35 per share, totaling $3,325. This acquisition was related to the exercise of options, which were issued as part of his compensation for services rendered as an officer and director of the company.
Following the sale, Quarles no longer holds any shares of common stock directly. However, he continues to have a significant indirect stake in the company through derivative securities. The filing noted that Quarles owns 4,910,000 shares underlying non-qualified stock options and an additional 1,954,545 restricted stock units, which have not yet vested.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. Applied Energetics, based in Tucson, Arizona, is known for its work in the fields of lasers, high voltage electronics, advanced dynamic optics, and atmospheric and subatomic particle interactions.
The company's shares are traded over the counter, and this recent transaction by a key executive is likely to be of interest to current and potential investors.
InvestingPro Insights
Amid the news of Applied Energetics, Inc.'s (OTC:AERG) CEO Gregory James Quarles' recent stock transactions, investors may seek additional context on the company's financial health and market performance. According to InvestingPro data, Applied Energetics has a market capitalization of 347.95 million USD, indicating its size within the defense and security technology sector. The company's gross profit margin stands at an impressive 66.18% for the last twelve months as of Q1 2024, showcasing its ability to maintain profitability in its core operations.
However, it's important to note that the company is not currently profitable, with a negative P/E ratio of -42.89, and has experienced significant stock price volatility. Over the last month, the stock has decreased by 16.16%, and it is trading near its 52-week low, which could suggest a potential buying opportunity for those who believe in the company's long-term value proposition. This aligns with one of the InvestingPro Tips highlighting that the stock has fared poorly over the recent period. Furthermore, the company operates with a moderate level of debt, which is an essential factor for investors to consider when assessing the risk profile of their investment.
For investors interested in deeper analysis, there are additional InvestingPro Tips available, which could further inform investment decisions regarding Applied Energetics. For instance, while the company does not pay a dividend to shareholders, it has shown a high return over the last decade, indicating potential for long-term growth. To explore these insights in detail, investors can visit https://www.investing.com/pro/AERG and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 7 more InvestingPro Tips available for Applied Energetics, which could provide valuable perspectives for those tracking insider transactions and overall company performance.
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