In a recent transaction, Bradford Thomas Adamczyk, the Executive Chairman of Applied Energetics, Inc. (OTC:AERG), sold 10,000 shares of the company's common stock at an average price of $2.00 per share, amounting to a total value of $20,000. This sale occurred on March 15, 2024, and was disclosed in a filing with the Securities and Exchange Commission.
The transaction was part of a pre-arranged trading plan, known as a 10b-5 Plan, which Adamczyk had adopted on June 15, 2023. Such plans allow company insiders to establish pre-planned transactions to sell a predetermined number of shares at a specified time, providing a defense against potential accusations of trading on insider information.
Additionally, on the same date, Adamczyk also acquired 10,000 shares of Applied Energetics' common stock, priced at $0.07 per share, for a total transaction value of $700. Following these transactions, Adamczyk's direct holdings in the company adjusted to 671,482 shares of common stock.
Investors might also be interested in the derivative securities section of the filing, where it was noted that Adamczyk has control over non-qualified stock options. However, it is important to note that none of these options were exercised during the reported transactions.
Applied Energetics, based in Tucson, Arizona, operates within the Search, Detection, Navigation, Guidance, Aeronautical Systems industry. It has undergone several name changes in its history, previously known as Ionatron, Inc., US Home & Garden Inc., and Natural Earth Technologies Inc.
For those keeping a close eye on insider transactions, such details can be found in the company's latest SEC filings and are a regular part of monitoring executive movements within public companies.
InvestingPro Insights
As investors scrutinize the recent insider transactions by Bradford Thomas Adamczyk at Applied Energetics, Inc., it's also worth considering the company's financial health and market performance. According to InvestingPro data, Applied Energetics holds a market capitalization of approximately $414.63 million. Despite not being profitable over the last twelve months, the company has managed an impressive gross profit margin of 71.53% in the same period. However, with a negative Price-to-Earnings (P/E) ratio of -58.38, and an even lower adjusted P/E ratio for the last twelve months as of Q3 2023, sitting at -59.32, the company's earnings outlook appears challenging.
InvestingPro Tips suggest that Applied Energetics' financial position is bolstered by the fact that it holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This could provide some reassurance to investors about the company's ability to meet its immediate financial commitments. On the flip side, the company is trading at a high revenue valuation multiple and a high Price/Book multiple of 174.15, which may indicate that its stock is priced optimistically relative to its book value and revenue.
For those considering a deeper analysis, there are additional InvestingPro Tips available, which can be found by visiting the company's page on InvestingPro. For example, while the company does not pay dividends, it has shown strong returns over the last five and ten years. These insights, along with a comprehensive suite of metrics, can help investors make more informed decisions. To access these valuable resources, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 9 additional InvestingPro Tips that could further guide investment considerations for Applied Energetics, Inc.
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