Ault Alliance executive chairman buys $655 in company stock

In recent market transactions, Milton C. Ault III, the Executive Chairman of Ault Alliance, Inc. (NYSE:AULT), has increased his stake in the company through the purchase of additional shares. The executive bought a total of 2,800 shares of common stock, valued at approximately $655, signaling confidence in the company's prospects.

The acquisitions occurred over two separate transactions on August 21 and 22. On the first day, Ault purchased 2,300 shares at an average price of $0.2345 per share. The following day, he bought an additional 500 shares, with the price slightly lower at $0.2321 per share. The range of purchase prices for these transactions was between $0.2273 and $0.2409.

Following these transactions, Ault's direct ownership in Ault Alliance's common stock has reached 6,345 shares. Additionally, through indirect ownership by Ault & Company, Inc., of which Milton C. Ault III is the CEO, he is deemed to beneficially own 25,229 shares of the company's common stock.

Investors often monitor insider buying as it can be a sign that company executives believe in the firm's future performance. Ault Alliance, Inc., known for its work in the electronic components sector, has thus shown through these transactions a positive signal from its top executive.

In other recent news, Ault Alliance, Inc. has announced a strategic reorganization, focusing on its artificial intelligence data center operations. The first half of 2024 saw a revenue of $76.3 million and total assets amounting to $271 million. The company's subsidiaries, including its electric vehicle charging subsidiary, TurnOnGreen, Inc., and defense sector subsidiary, Enertec Systems 2001 Ltd., reported significant sales increases. As part of the reorganization, Ault Alliance plans to issue one or more special dividends to stockholders of stock in its subsidiaries not related to the AI data center business. The company anticipates changing its name to Hyperscale Data, Inc. and its ticker symbol to GPUS in September 2024. The company's subsidiary, Sentinum, Inc., has successfully mined a total of 552 Bitcoin this year, contributing to a cumulative total of 2,894 Bitcoin since the start of its operations. Additionally, Ault Alliance announced the sale of 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 are recent developments in the company's operations.

InvestingPro Insights

Amidst the recent insider buying activity at Ault Alliance, Inc., it's pertinent to look at the company's financial health and market performance for a comprehensive understanding of its position. According to InvestingPro data, Ault Alliance has a market capitalization of approximately 8.84 million USD, which is relatively small, indicating a potentially higher risk profile for investors.

The company's financial metrics reveal some challenges. Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt, as reflected by a negative P/E Ratio of -0.01 and an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -0.07. Moreover, the company's Price / Book multiple stands at 0.15, which suggests the stock is trading at a low valuation relative to the company's book value. This could be seen as a potential entry point for investors, or as a sign of underlying issues that have caused the market to price the company's assets so modestly.

Despite the insider buying, Ault Alliance's stock price has experienced significant volatility and has fared poorly over the last month, with a 1 Month Price Total Return at -19.88%. Additionally, the company's short-term obligations exceed its liquid assets, which could raise concerns about its ability to meet immediate financial liabilities.

For investors looking for more detailed analysis and tips on Ault Alliance, there are additional InvestingPro Tips available. These tips delve deeper into the company's performance, valuation, and financial stability, providing a clearer picture for informed investment decisions. To explore further, visit: https://www.investing.com/pro/AULT

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