Applied Digital (APLD) Director Reports 20,000-Share Sale; Holds 297,987 Shares
Rhea-AI Filing Summary
Richard N. Nottenburg, a director of Applied Digital Corporation (APLD), reported a sale of 20,000 shares of the issuer's common stock on 09/03/2025 at a price of $15.26 per share. After this transaction the filing shows the Reporting Person as beneficially owning 297,987 shares in total.
The reported total includes 28,606 restricted stock units (RSUs) granted December 27, 2024 that convert one-for-one to shares and vest in full on November 20, 2025, and 200,000 restricted shares granted May 13, 2024 that vest in two tranches of 100,000 shares on May 13, 2026 and May 13, 2027, subject to continued service.
Positive
- Transparency maintained: Director disclosed sale and detailed composition of remaining holdings including RSUs and restricted stock
- Time‑based vesting: Significant portion of holdings (28,606 RSUs and 200,000 restricted shares) are subject to future vesting, aligning incentives with continued service
Negative
- Insider sale: The Reporting Person disposed of 20,000 shares, reducing immediate insider ownership
- Potential future share supply: Large tranches of restricted shares and RSUs will vest on specified dates, which could increase available shares if subsequently sold
Insights
TL;DR: Director sold 20,000 shares; remaining holdings include sizeable time‑based restricted awards.
The reported open‑market sale of 20,000 shares at $15.26 is a routine disclosure of insider liquidity. The Reporting Person still holds 297,987 shares in the aggregate, of which 28,606 are RSUs vesting 11/20/2025 and 200,000 are restricted shares vesting in two tranches on 5/13/2026 and 5/13/2027. This filing provides clear timelines for when additional shares may become freely tradable, which is relevant for share supply considerations but does not itself provide operational or financial performance information.
TL;DR: Routine Section 16 disclosure showing a director sale and continued retained incentive awards tied to service.
The Form 4 documents a director's disposition and confirms the company's use of RSUs and time‑vested restricted stock for non‑employee director and subsidiary chairman compensation. The awards are contingent on continued service with explicit vesting dates, which aligns management incentives with multi‑year retention. No amendment or extraordinary governance action is indicated in the report.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 20,000 | $15.26 | $305K |
Footnotes (1)
- Includes 28,606 restricted stock units ("RSUs") granted on December 27, 2024 to non-employee directors for board service. The RSUs represent a contingent right to receive shares of common stock of Applied Digital Corporation (the "Issuer") on a one-for-one basis, have no expiration date, and vest in full on November 20, 2025, subject to the Reporting Person's continued service through such date. Includes 200,000 shares of restricted stock granted to the Reporting Person on May 13, 2024 in connection with the Reporting Person's service as the Chairman of the board of directors of Applied Digital Cloud Corporation, a subsidiary of the Issuer. The shares of restricted stock vest as follows: 100,000 shares on May 13, 2026 (the second anniversary of the grant date) and 100,000 shares on May 13, 2027 (the third anniversary of the grant date), provided that the Reporting Person is a director of both the Issuer and Applied Digital Cloud Corporation on each such date.
