In a recent SEC filing, Richard N. Nottenburg, a director at Applied Digital Corp. (NASDAQ:APLD), disclosed the sale of 30,000 shares of the company's common stock. The transactions, executed on October 17, 2024, were carried out at a weighted average price of approximately $8.01 per share, resulting in a total transaction value of $240,300.
Following these sales, Nottenburg retains direct ownership of 403,686 shares. Notably, this total includes 33,685 shares of restricted stock granted for his service as a non-employee director, which are set to vest on November 9, 2024. Additionally, 300,000 shares of restricted stock were awarded in connection with his role as Chairman of the board of directors at Applied Digital Cloud Corporation, a subsidiary, with vesting scheduled over the next three years.
In other recent news, Applied Blockchain Inc has experienced significant growth in revenue, with an increase to $60.7 million in the fiscal first quarter of 2025. This surge was primarily driven by the strong performance of their data center hosting and cloud services segments. Despite the revenue increase, the company reported an adjusted net loss of $21.6 million. In addition, the company has seen stock price target increases from H.C. Wainwright, Lake Street Capital Markets, and Craig-Hallum, all maintaining a Buy rating.
The company is also nearing the completion of a high-performance computing lease with a major hyperscaler, as highlighted by analysts from both Needham and Craig-Hallum. This development is seen as a positive step for the company's operations. In terms of executive changes, Saidal Mohmand has taken over as Chief Financial Officer, with David Rench transitioning to the role of Chief Administrative Officer.
These are among the recent developments for Applied Blockchain, which continues to make steady progress on its current projects and strategic investments, despite facing a net loss. The company's robust revenue growth and strong market demand for its upcoming GPU cluster deployments are notable highlights.
InvestingPro Insights
Applied Digital Corp. (NASDAQ:APLD) has been experiencing significant market momentum, as evidenced by its strong performance across various timeframes. According to InvestingPro data, the company has seen a 19.32% return over the last week and an impressive 221.4% return over the past six months. This upward trend aligns with the recent insider sale by director Richard N. Nottenburg, potentially indicating a favorable market perception of the company's value.
Despite the positive stock performance, InvestingPro Tips highlight some financial challenges. The company is not expected to be profitable this year, and it suffers from weak gross profit margins. This is reflected in the latest financial data, which shows a gross profit margin of just 3.04% for the last twelve months as of Q1 2025.
On the growth front, Applied Digital Corp. has shown remarkable revenue expansion, with a 124.03% increase in the last twelve months. This robust growth is complemented by analysts' expectations of continued sales growth in the current year, as noted in one of the InvestingPro Tips.
It's worth mentioning that InvestingPro offers 20 additional tips for Applied Digital Corp., providing investors with a comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the stock's high volatility and its trading near its 52-week high.
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