Is Applied Digital Stock a Buy or Sell After a Company Director Sold Shares Worth $1.8 Million?
Key Points
45,987 shares were sold in a direct open-market transaction, totaling ~$1.8 million at a reported price of $38.57 per share on Jan. 29, 2026.
The transaction represented 10.59% of Chuck Hastings' direct holdings, reducing his stake from 434,359 to 388,372 directly held shares.
The sale was executed entirely through direct ownership; no indirect holdings or derivative instruments were involved.
This event aligns with Mr. Hastings' pattern of multi-block sales over the past six months, with the trade size moderately below his recent median disposition, reflecting a smaller available share base.
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On Jan. 29, 2026, Board of Directors member Chuck Hastings executed an open-market sale of 45,987 shares of Applied Digital (NASDAQ:APLD), as disclosed in this SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 45,987 |
| Transaction value | $1.8 million |
| Post-transaction shares (direct) | 388,372 |
| Post-transaction value (direct ownership) | $14.8 million |
Transaction value based on SEC Form 4 reported price ($38.57); post-transaction value based on directly held shares after the trade and Jan. 29, 2026 market close as used in SEC Form 4 reporting.
Key questions
- How does the trade compare to the insider's recent disposition cadence?
This sale of 45,987 shares is moderately smaller than Mr. Hastings' recent median sell size of 60,493 shares, with the percentage of holdings sold (10.59%) also below the recent median (12.66%), consistent with a declining share base as prior sales reduced available capacity. - Was there any activity involving derivative securities or indirect entities?
No derivative transactions or indirect entity trades were reported; the transaction was executed solely through direct ownership of common shares. - What is the post-sale position and remaining exposure?
After the sale, Mr. Hastings retains 388,372 directly held shares, valued at ~$14.8 million as of Jan. 29, 2026, with no indirect holdings and no immediately exercisable options outstanding. - How does market context factor into the timing and value realization?
The transaction occurred when shares were priced at $38.57, and during a period when the stock's one-year total return was 399.32% as of Jan. 29, 2026, suggesting the insider realized liquidity following substantial appreciation.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $263.99 million |
| Net income (TTM) | -$127.62 million |
| 1-year price change (as of Jan. 29, 2026) | 399.32% |
* 1-year price change calculated using Jan. 29, 2026 as the reference date.
Company snapshot
- Applied Digital provides digital infrastructure solutions, including high-performance computing (HPC) hosting, cloud services, and data center operations, with revenue generated from infrastructure services and GPU computing for AI, machine learning, and crypto mining clients.
- It operates a business model focused on designing, constructing, and managing data centers that support critical workloads for AI and HPC applications, monetizing capacity through hosting and cloud service contracts.
- The company serves enterprise customers in the AI, machine learning, and cryptocurrency mining sectors, targeting organizations with intensive computing and data processing needs.
Applied Digital delivers scalable digital infrastructure for high-performance computing and artificial intelligence workloads across North America. The company leverages purpose-built data centers and advanced GPU solutions to support demanding enterprise applications. Its strategic focus on next-generation computing and cloud services positions it to address the growing needs of AI and HPC customers.
What this transaction means for investors
The sale of Applied Digital shares by Board of Directors member Chuck Hastings is not a red flag. He still holds a substantial 388,372 shares after the transaction. Most likely, Mr. Hastings was capitalizing on the soaring stock price, which led to Applied Digital reaching a 52-week high of $42.27 on Jan. 28, the day before he sold.
The company’s stock took off thanks to investor excitement over the artificial intelligence sector, particularly for businesses operating in the AI infrastructure market, such as Applied Digital. It owns data centers, the large facilities that house computing equipment used to operate AI systems.
Due to strong demand for data center space, Applied Digital’s revenue has seen massive growth. In its fiscal second quarter ended Nov. 30, sales rose a whopping 250% year over year, reaching $126.6 million.
But the company’s success combined with investor fervor over AI led to a skyrocketing share price valuation. Applied Digital’s price-to-sales ratio exceeds 26, which is quite expensive. This makes now a good time to sell shares, but not to buy. If you want to invest in Applied Digital, wait for the stock to drop.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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