B. Riley Wealth Advisors Inc. Takes Position in Applied Digital Corporation $APLD

Key Points

• B. Riley Wealth Advisors bought 204,798 shares of Applied Digital (~$2.06M), representing about 0.08% of the company at quarter-end.
• Applied Digital reported revenue of $64.22M (up 84.3% YoY) and EPS of -$0.03 which beat estimates, but the company remains unprofitable with negative margins and a negative P/E.
• Insiders sold 328,035 shares (~$11.38M) in the past 90 days, institutional ownership stands at 65.67%, and analysts' consensus is a Moderate Buy with an average target of $26.20.

B. Riley Wealth Advisors Inc. bought a new stake in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 204,798 shares of the company's stock, valued at approximately $2,062,000. B. Riley Wealth Advisors Inc. owned approximately 0.08% of Applied Digital at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Atlantic Union Bankshares Corp acquired a new position in shares of Applied Digital during the second quarter worth about $25,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Applied Digital during the 2nd quarter valued at about $26,000. Ameriflex Group Inc. acquired a new position in Applied Digital during the 2nd quarter worth approximately $42,000. PNC Financial Services Group Inc. purchased a new position in Applied Digital in the 1st quarter worth approximately $28,000. Finally, Hollencrest Capital Management purchased a new position in Applied Digital in the 2nd quarter worth approximately $50,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Price Performance

APLD opened at $27.86 on Monday. The company has a market capitalization of $7.78 billion, a P/E ratio of -24.65 and a beta of 6.95. The company has a 50-day moving average of $29.84 and a 200-day moving average of $19.68. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. Applied Digital Corporation has a 1-year low of $3.31 and a 1-year high of $40.20.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.11) by $0.08. The business had revenue of $64.22 million during the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The company's revenue for the quarter was up 84.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.15) earnings per share. Equities analysts expect that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Chuck Hastings sold 25,000 shares of the company's stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $34.27, for a total transaction of $856,750.00. Following the sale, the director directly owned 426,612 shares of the company's stock, valued at approximately $14,619,993.24. This represents a 5.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Rachel H. Lee sold 24,213 shares of Applied Digital stock in a transaction on Friday, October 24th. The stock was sold at an average price of $33.20, for a total transaction of $803,871.60. Following the completion of the transaction, the director directly owned 59,400 shares of the company's stock, valued at approximately $1,972,080. This represents a 28.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 328,035 shares of company stock worth $11,376,479. Corporate insiders own 9.50% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently issued reports on APLD. B. Riley reiterated a "buy" rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a research note on Sunday, October 19th. Needham & Company LLC reiterated a "buy" rating and issued a $41.00 price objective on shares of Applied Digital in a report on Wednesday, October 29th. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research note on Wednesday, October 8th. Finally, Compass Point began coverage on Applied Digital in a research report on Monday, September 15th. They set a "buy" rating on the stock. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $26.20.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.

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