50,000 Shares in Applied Digital Corporation $APLD Purchased by Two Seas Capital LP

Key Points

• Two Seas Capital LP acquired 50,000 Applied Digital shares during the third quarter, valued at approximately $1.22 million. Institutional investors and hedge funds collectively own 65.67% of the company.
• Applied Digital’s latest quarter showed sharply higher revenue of $240.35 million, up 406.3% year over year, but the company posted a $0.39 loss per share that missed estimates and remains unprofitable.
• The stock rose 2.6% to $25.34, while investors weigh the company’s AI-infrastructure expansion against its substantial debt, capital-spending needs and execution risks. Analyst sentiment is broadly positive, with an average “Moderate Buy” rating and a $60.88 price target.

Two Seas Capital LP acquired a new position in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 50,000 shares of the company's stock, valued at approximately $1,218,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Situational Awareness LP raised its stake in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after purchasing an additional 2,139,378 shares in the last quarter. Equitec Proprietary Markets LLC bought a new position in Applied Digital in the 2nd quarter valued at about $312,349,000. Hsbc Holdings PLC acquired a new position in shares of Applied Digital in the 4th quarter valued at approximately $29,510,000. Sei Investments Co. lifted its holdings in shares of Applied Digital by 33.0% during the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock worth $25,964,000 after acquiring an additional 271,618 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Applied Digital by 32.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company's stock worth $21,681,000 after acquiring an additional 143,308 shares in the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares of the company's stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 9.50% of the stock is owned by insiders.

Applied Digital Trading Up 2.6%

NASDAQ APLD traded up $0.64 on Tuesday, reaching $25.34. The company had a trading volume of 22,554,712 shares, compared to its average volume of 22,575,412. The firm has a market cap of $7.39 billion, a price-to-earnings ratio of -28.47 and a beta of 5.99. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. Applied Digital Corporation has a fifty-two week low of $19.00 and a fifty-two week high of $50.72. The business has a 50 day moving average of $27.17 and a two-hundred day moving average of $32.57.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million during the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The company's quarterly revenue was up 406.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.24) EPS. Analysts forecast that Applied Digital Corporation will post -1.09 EPS for the current year.

Applied Digital News Summary

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital announced an agreement securing up to 1 gigawatt of potential power capacity in Finland, its first international development opportunity. The site could support a large-scale AI campus and gives the company additional long-term growth potential in Europe. Management said discussions with hyperscale customers are already underway. Applied Digital Secures Up to 1 GW of Potential Power Capacity in Finland
• Positive Sentiment: The company has continued expanding its domestic infrastructure, including bringing additional capacity online at Polaris Forge 1 and recently reaching a 250-megawatt online-capacity milestone. Investors view these additions as potential drivers of future AI and high-performance-computing revenue. Applied Digital Brings 75 MW Online at Polaris Forge 1
• Neutral Sentiment: Revenue expectations for the quarter are elevated because of rapid AI-infrastructure growth, making the earnings report and management’s outlook important near-term catalysts. Investors will focus on new customer contracts, development timelines, financing needs and the pace of capacity deployment. Applied Digital Q1 Earnings Preview
• Negative Sentiment: Analysts and market commentators continue to flag substantial debt, heavy capital spending and execution risk as Applied Digital funds its aggressive expansion. The company’s prior results included a larger-than-expected loss despite sharply higher revenue, highlighting that growth has not yet translated into profitability. Applied Digital Q1 Earnings Risks
• Negative Sentiment: Short interest is elevated, with approximately 21% of the company’s float sold short ahead of earnings. A disappointing report or cautious guidance could intensify selling, although strong results could also trigger short covering. Applied Digital Reports With 21% of Float Sold Short

Analyst Upgrades and Downgrades

APLD has been the topic of several recent analyst reports. B. Riley Financial reiterated a "buy" rating and issued a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a report on Tuesday, July 21st. Morgan Stanley raised their price target on shares of Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. UBS Group initiated coverage on shares of Applied Digital in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $38.00 price objective for the company. Finally, Wall Street Zen lowered shares of Applied Digital from a "sell" rating to a "strong sell" rating in a research report on Sunday, August 30th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Applied Digital has an average rating of "Moderate Buy" and an average price target of $60.88.

Applied Digital Company Profile

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company's business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.