Form 4: Applied Digital Corp. Director Ella G. Benson Sells Shares Under 10b5-1 Plan
SEC Form 4 Filing
Director Ella G. Benson sold 18,242 shares of Applied Digital Corp. common stock at $6.50 per share on May 16, 2025, under a pre-arranged Rule 10b5-1 trading plan.
Summary
- On May 16, 2025, Ella G. Benson, a director of Applied Digital Corp., sold 18,242 shares of common stock at a price of $6.50 per share.
- The sale was executed under a Rule 10b5-1 trading plan adopted on January 30, 2025.
- Following the transaction, Benson directly owns 111,825 shares, which includes 28,606 restricted stock units (RSUs) granted on December 27, 2024, that vest on November 20, 2025.
- It also includes 60,976 shares of restricted stock granted on May 6, 2024, with vesting dates on April 30, 2026 and April 30, 2027.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing a stock sale by a company director. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about the transaction.
Future Outlook
The document outlines future vesting dates for restricted stock units and restricted stock, contingent on continued service as a director.
Industry Context
This Form 4 filing is a routine disclosure of insider transactions, providing transparency to investors regarding the trading activities of company directors. It's common for executives and directors to utilize 10b5-1 trading plans to sell shares over time to avoid accusations of insider trading.
Comparison to Industry Standards
- Monitoring insider transactions is a standard practice in corporate governance.
- Companies like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT), which operate in similar sectors, also have executives who file Form 4s regularly.
- The use of 10b5-1 plans is a common strategy among corporate insiders to manage their stock sales in compliance with SEC regulations.
Stakeholder Impact
- The stock sale may have a minor impact on shareholders, potentially creating slight downward pressure on the stock price in the short term.
- The vesting of RSUs and restricted stock impacts the director's holdings and alignment with the company's long-term performance.
Key Dates
| Date | Description |
|---|---|
| 2024-05-06 | Grant date of 60,976 restricted shares as an initial grant upon initiation of board service. |
| 2024-12-27 | Grant date of 28,606 Restricted Stock Units (RSUs) to non-employee directors for board service. |
| 2025-01-30 | Date of adoption of Rule 10b5-1 trading plan by the Reporting Person. |
| 2025-04-30 | Vesting date of 20,326 shares of restricted stock. |
| 2025-05-16 | Date of transaction: sale of 18,242 shares of common stock. |
| 2025-05-19 | Date of Power of Attorney execution. |
| 2025-11-20 | Vesting date of 28,606 Restricted Stock Units (RSUs). |
| 2026-04-30 | Vesting date of 20,325 shares of restricted stock. |
| 2027-04-30 | Vesting date of 20,325 shares of restricted stock. |
Keywords
Form 4, Applied Digital Corp., Ella G. Benson, stock sale, Rule 10b5-1, director, APLD, insider trading
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