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Applied Digital Corp.·4

Apr 14, 5:24 PM ET

Cummins Wes 4

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Applied Digital (APLD) CEO Wes Cummins Exercises RSUs, Withholds Shares

What Happened
Wes Cummins, CEO and Chairman of Applied Digital (APLD), converted/exercised derivative awards on April 10, 2026, resulting in two derivative conversion entries of 100,000 shares each (totaling 200,000 shares). As part of the vesting/conversion, 39,350 shares were withheld to cover tax liabilities at $26.26 per share, valued at $1,033,331. The filing shows one conversion recorded as an acquisition and another conversion recorded as a disposition at $0 (these reflect award-to-share conversions rather than an open-market sale).

Key Details

  • Transaction date: April 10, 2026; Form 4 filed April 14, 2026 (timely within the 2-business-day reporting window).
  • Transactions reported:
    • M (exercise/conversion): 100,000 shares acquired (price N/A).
    • F (tax withholding): 39,350 shares withheld/disposed at $26.26 → $1,033,331 (this withholding is to satisfy taxes).
    • M (exercise/conversion): 100,000 shares recorded as disposed at $0 (reflects conversion/cancellation mechanics, not an open-market sale).
  • Shares owned after transaction: not fully specified in the provided data. Footnotes note holdings include 742,166 shares in the Reporting Person’s IRA (F2) and additional shares held via family and prior entities (F5, F6).
  • Notable footnotes:
    • F1: RSU grant schedule: portions vested Oct 10, 2025 and Apr 10, 2026 (100,000 on Apr 10, 2026); further vesting through 2027.
    • F3: A separate 1,500,000-RSU grant on Jan 6, 2026 has its own multi-year vesting schedule.
    • F4: Withholding of shares for taxes does not constitute an open-market sale.

Context
The filings reflect routine conversion/vesting of restricted stock units (RSUs) and tax-withholding rather than an open-market sale or a purchase of stock. Transaction code M indicates exercise/conversion of a derivative award (here, RSUs converting into common shares). Transaction code F indicates shares withheld to satisfy tax obligations. Such withholding is common when RSUs vest and does not necessarily signal a change in the insider’s view of the company.