495,000 Shares in Applied Digital Corporation $APLD Bought by BRC Group Holdings Inc.

Key Points

• BRC Group Holdings disclosed a new fourth-quarter stake in Applied Digital, buying 495,000 shares valued at about $12.1 million. The position now represents roughly 5.1% of its portfolio and makes APLD its third-largest holding.
• Applied Digital has seen notable institutional interest, with hedge funds and other investors actively increasing positions; institutional holders now own about 65.67% of the stock. Meanwhile, company insiders have been selling shares, including directors Douglas S. Miller and Richard N. Nottenburg.
• The stock has attracted bullish analyst sentiment despite recent volatility, with several firms raising price targets and the average target around $59.11. Applied Digital also reported strong revenue growth in its latest quarter, though earnings missed estimates and the company remains unprofitable.

BRC Group Holdings Inc. bought a new position in Applied Digital Corporation (NASDAQ:APLD - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 495,000 shares of the company's stock, valued at approximately $12,137,000. Applied Digital comprises about 5.1% of BRC Group Holdings Inc.'s portfolio, making the stock its 3rd biggest position. BRC Group Holdings Inc. owned approximately 0.18% of Applied Digital at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the stock. AQR Capital Management LLC boosted its position in shares of Applied Digital by 84.8% in the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after buying an additional 8,692 shares during the period. NewEdge Advisors LLC boosted its position in shares of Applied Digital by 239.1% in the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after buying an additional 23,457 shares during the period. Geneos Wealth Management Inc. boosted its position in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after buying an additional 3,542 shares during the period. Strs Ohio acquired a new stake in shares of Applied Digital in the first quarter worth $71,000. Finally, Cetera Investment Advisers boosted its position in Applied Digital by 61.0% during the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after purchasing an additional 23,360 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 35,000 shares of company stock worth $1,182,175 over the last three months. 9.50% of the stock is owned by company insiders.

Applied Digital Stock Down 4.8%

NASDAQ APLD opened at $47.28 on Friday. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock's 50 day moving average is $34.40 and its two-hundred day moving average is $31.42. The company has a market capitalization of $13.51 billion, a price-to-earnings ratio of -63.89 and a beta of 5.69. Applied Digital Corporation has a 1-year low of $6.68 and a 1-year high of $50.72.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm's revenue for the quarter was up 139.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.08) earnings per share. Equities analysts forecast that Applied Digital Corporation will post -0.68 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

APLD has been the subject of a number of research reports. B. Riley Financial reissued a "buy" rating and set a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday. Citizens Jmp raised their target price on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a report on Thursday, May 21st. Compass Point restated a "buy" rating and set a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Finally, Lucid Cap Mkts upgraded Applied Digital to a "strong-buy" rating in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Applied Digital has an average rating of "Buy" and an average price target of $59.11.

About Applied Digital

Applied Digital NASDAQ: APLD is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital's modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.

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