In a recent transaction, Bradford Thomas Adamczyk, the Executive Chairman of Applied Energetics, Inc. (OTCMKTS:AERG), sold 10,000 shares of the company's common stock. The sale was executed at a weighted average price ranging from $1.74 to $1.91, bringing the total value of the sold shares to approximately $17,760.
The transaction occurred on April 15, 2024, and was part of a prearranged 10b5-1 trading plan, which Adamczyk had adopted on June 15, 2023. The 10b5-1 plan allows company insiders to set up a predetermined schedule for buying and selling shares, providing an affirmative defense against accusations of trading on non-public, material information.
In addition to the sale, Adamczyk also acquired 10,000 shares of common stock at a price of $0.07 per share on the same day, totaling an investment of $700. This transaction increased his direct holdings to 681,482 shares following the acquisition.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC), which provides a record of insider trades. According to the filing, Adamczyk's indirect holdings include 1,563,599 shares held by Moriah Stone Global L.P., where he is a controlling partner. Moreover, the executive's derivative securities, specifically non-qualified stock options, were not exercised but remain under his control through Adamczyk Family 2021 LLC.
Investors often monitor insider buying and selling as it can provide insights into the company's performance and management's confidence in the company's future. Applied Energetics, Inc., based in Tucson, Arizona, specializes in the development of advanced laser and high voltage technologies with applications in defense and security industries.
The trading activity of Adamczyk reflects a balance of acquiring and divesting shares in the company, with the latest transactions providing a glimpse into the executive's stock ownership strategy.
InvestingPro Insights
Amidst the insider trading activities at Applied Energetics, Inc., current financial metrics offer additional context for investors. The company boasts a substantial gross profit margin of 75.77% for the last twelve months as of Q4 2023, underscoring its ability to retain a significant portion of revenue after accounting for the cost of goods sold. This high margin is indicative of strong pricing power or cost control, which can be a positive sign for potential investors.
Despite not being profitable over the last twelve months, Applied Energetics holds more cash than debt on its balance sheet, providing it with a cushion to fund operations and invest in growth opportunities. This financial stability is further supported by the fact that the company’s liquid assets exceed its short-term obligations, indicating a robust liquidity position that can help weather economic downturns and invest in strategic initiatives.
From a valuation perspective, Applied Energetics is trading at a high Price / Book multiple of 247.23 as of the end of Q4 2023. This suggests that the market is pricing the company's stock at a premium, which can be attributed to investor expectations of future growth or the company's intangible assets and intellectual property.
For those interested in a deeper dive into Applied Energetics' financial health and performance, InvestingPro offers additional InvestingPro Tips, including insights on revenue valuation multiples and the company's return over the last decade. There are 6 more InvestingPro Tips available, which can be accessed by visiting the InvestingPro platform. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of investment analysis tools and data.
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