Ault Alliance executive chairman buys $12.8k in company stock

Milton C. Ault III, the Executive Chairman of Ault Alliance, Inc. (NYSE:AULT), has recently made a series of purchases of the company's common stock, as per the latest filings with the Securities and Exchange Commission. Over a span of three days, Ault acquired a total of $12,781 worth of shares, demonstrating confidence in the company's prospects.

The transactions occurred from August 27 to August 29, 2024, with prices ranging from $0.2083 to $0.2301 per share. On the first day, Ault purchased 1,500 shares at an average price of $0.2296, followed by a larger acquisition of 45,000 shares at $0.2301 on the next day. The buying spree culminated on August 29 with the purchase of 10,000 shares at the lowest price point of $0.2083.

The disclosed footnotes indicate that these transactions were conducted in the open market, with Ault & Company, Inc., where Milton C. Ault III serves as CEO, being the beneficial owner of the shares. The footnotes also commit to providing full information regarding the number of shares bought at each price point upon request by the SEC staff, issuer, or any security holder of the issuer.

These recent purchases have increased Ault's direct and indirect holdings in Ault Alliance, marking a significant investment by the Executive Chairman in the company's stock. Investors often view such insider buying as a positive signal about the company's future performance and valuation.

Ault Alliance, Inc., formerly known as BitNile Holdings, Inc., Ault Global Holdings, Inc., and DPW Holdings, Inc., operates within the electronic components sector and is incorporated in Delaware. The company's headquarters are located in Las Vegas, Nevada.

In other recent news, Ault Alliance, now rebranded as Hyperscale Data, Inc., has been making strategic moves to bolster its operations. The company has reported a significant increase in revenue, reaching $76.3 million for the first half of 2024, with total assets amounting to $271 million. Hyperscale Data has also gained approval from shareholders to convert a 10% OID Convertible Promissory Note into common stock, a maneuver that could potentially influence the company's capital structure.

In addition, Hyperscale Data is planning a substantial expansion of its Michigan-based data center, aiming to increase capacity from 30 megawatts to 300 megawatts. This expansion, however, is dependent on state regulatory approvals and adequate funding. The company has also sold 300 shares of Series C convertible preferred stock and accompanying warrants to Ault & Company, Inc., an affiliated entity, for a total of $300,000.

These recent developments align with industry trends, as a Goldman Sachs report suggests a potential 160% surge in data center power demand driven by AI. Hyperscale Data's strategic moves, including the rebranding and focus on data center operations, demonstrate the company's commitment to capitalizing on this growing market need.

InvestingPro Insights

In light of the recent share purchases by Milton C. Ault III, Executive Chairman of Ault Alliance, Inc., investors may be seeking deeper insights into the company's financial health and stock performance. According to InvestingPro data, Ault Alliance currently has a market capitalization of $7.72 million and is trading at a low Price / Book multiple of 0.29, which could suggest that the stock is undervalued relative to its book value. However, this metric should be considered in the context of the company's overall financial situation.

InvestingPro Tips indicate that Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt. This is a critical factor for investors to consider, as it could impact the company's financial stability and future growth prospects. Additionally, the stock has experienced a considerable decline over various time frames, including a 1-month price total return of -26.79% and a staggering 1-year price total return of -99.21%, reflecting the volatility and recent challenges in the company's stock price trajectory.

It's also worth noting that Ault Alliance does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income streams from their stock holdings. For investors intrigued by the insider buying activity, it's essential to weigh these aspects of the company's performance and financial health. For those interested in exploring further, there are additional InvestingPro Tips available at https://www.investing.com/pro/AULT that could provide more comprehensive insights into Ault Alliance's investment profile.

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