In a recent move, Gregory James Quarles, the President and CEO of Applied Energetics, Inc. (OTC:AERG), engaged in significant trading activity involving the company's stock. The transactions, which occurred on April 22 and 23, 2024, included both acquisitions and disposals of shares.
On April 22, Quarles acquired 7,000 shares of Applied Energetics' common stock at a price of $0.35 per share, amounting to a total investment of $2,450. The following day, he continued to increase his holdings by purchasing an additional 3,000 shares at the same price, investing $1,050. These purchases added a total of 10,000 shares to his position in the company at a combined cost of $3,500.
Concurrently, Quarles also sold shares on both days. On April 22, he sold 7,000 shares at a weighted average price ranging from $1.88 to $1.96, while on April 23, he sold another 3,000 shares with prices between $1.86 and $1.93. The total revenue generated from these sales was $18,930. The sales were executed pursuant to a 10b-5 Plan adopted by Quarles on June 15, 2023.
It is noteworthy that the acquisition of shares by Quarles was matched with an equal number of sales, leaving him with no additional shares following the transactions. The purpose behind these sales and whether they are part of a larger strategy or simply a personal financial decision remains undisclosed.
Applied Energetics, Inc., headquartered in Tucson, Arizona, specializes in the development and manufacture of advanced, high-performance lasers and other related technologies for defense and security applications.
The transactions were publicly disclosed in accordance with SEC regulations, providing transparency to investors and the market. As with all trading activities by company executives, these transactions are closely watched by investors for insights into executive confidence and potential future performance of the company's stock.
InvestingPro Insights
As investors analyze the trading activity of Gregory James Quarles, the President and CEO of Applied Energetics, Inc., it's also valuable to consider the company's financial health and market performance. Applied Energetics holds a market capitalization of $401.61 million and exhibits an impressive gross profit margin of 75.77% for the last twelve months as of Q4 2023. This margin reflects the company's efficiency in managing its production costs relative to its revenue.
Despite not being profitable over the last twelve months, with a negative P/E ratio of -54.79, the company's financial stability is supported by the fact that it holds more cash than debt on its balance sheet. This is a crucial indicator of the company's ability to navigate short-term financial obligations, as its liquid assets exceed its short-term liabilities.
Investors considering the company's stock will find that Applied Energetics is trading at a high revenue valuation multiple and a high Price/Book multiple of 249.72, which may suggest that the market has high expectations for future growth. These metrics, alongside the company's strong return over the last five years, provide a mixed picture that warrants careful consideration.
For more detailed analysis and additional InvestingPro Tips, including the company's long-term return profile and dividend policies, investors can explore the full suite of insights available on InvestingPro. There are currently 9 additional tips listed on InvestingPro that could further inform investment decisions. To gain access to these insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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