Form 4: Applied Digital Corp. Director Sells 50,000 Shares to Cover Tax Obligations

Richard N. Nottenburg, a director at Applied Digital Corp., sold 50,000 shares of common stock at $9.2 per share to cover income tax liabilities related to vested restricted stock.

Summary

• Richard N. Nottenburg, a director of Applied Digital Corp., sold 50,000 shares of common stock on November 27, 2024.
• The sale price was $9.2 per share.
• The shares were sold to cover income tax liabilities associated with the vesting of restricted stock.
• Following the transaction, Nottenburg beneficially owns 334,317 shares of Applied Digital Corp. common stock.
• This includes 300,000 shares of restricted stock granted on May 13, 2024, which vest in three tranches of 100,000 shares each on May 13, 2025, 2026, and 2027.

Sentiment

Score: 5

Explanation: The document is neutral, reporting a routine transaction by a company director. It doesn't indicate any positive or negative sentiment about the company's performance.

Risks

• The sale of shares by a director could be perceived negatively by the market, potentially impacting the stock price.

Industry Context

This is a standard SEC Form 4 filing, which is common for corporate insiders when they buy or sell shares of their company. It provides transparency into the transactions of company directors and officers.

Comparison to Industry Standards

• Form 4 filings are a standard practice for publicly traded companies in the US, ensuring transparency of insider transactions.
• The sale of shares to cover tax obligations is a common practice among executives who receive stock-based compensation.
• The vesting schedule of the restricted stock is typical for executive compensation packages.

Stakeholder Impact

• The sale of shares by a director could have a minor negative impact on shareholder sentiment, but it is a common practice.

Key Dates

Keywords

Applied Digital Corp, Richard N. Nottenburg, stock sale, insider trading, Form 4, restricted stock, tax liability, director