Caitong International Asset Management Co. Ltd Makes New Investment in Applied Digital Corporation $APLD

Key Points

• Caitong International Asset Management disclosed a new fourth-quarter position in Applied Digital, buying 176,515 shares worth about $4.33 million. The stake represents 1.1% of the firm’s portfolio and about 0.06% of Applied Digital.
• Insider selling continued, with directors Richard N. Nottenburg and Douglas S. Miller selling shares in late April. Altogether, insiders sold 35,000 shares worth about $1.18 million over the last 90 days.
• Analysts remain largely bullish on Applied Digital, with several firms raising price targets and the consensus rating sitting at Moderate Buy. The average price target is $70.56, while the stock recently traded at $46.59.

Caitong International Asset Management Co. Ltd purchased a new position in Applied Digital Corporation (NASDAQ:APLD - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 176,515 shares of the company's stock, valued at approximately $4,328,000. Applied Digital makes up 1.1% of Caitong International Asset Management Co. Ltd's investment portfolio, making the stock its 13th biggest holding. Caitong International Asset Management Co. Ltd owned 0.06% of Applied Digital as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Noble Wealth Management PBC acquired a new stake in Applied Digital in the fourth quarter worth about $25,000. Albion Financial Group UT acquired a new position in Applied Digital during the 4th quarter valued at about $25,000. Activest Wealth Management acquired a new position in Applied Digital during the 4th quarter valued at about $25,000. Ameriflex Group Inc. bought a new stake in shares of Applied Digital during the 4th quarter worth about $25,000. Finally, McMillan Office Inc. bought a new stake in shares of Applied Digital during the 4th quarter worth about $25,000. 65.67% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction 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 owned 208,378 shares in the company, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. This represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 35,000 shares of company stock worth $1,182,175 over the last ninety days. 9.50% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Roth Mkm reiterated a "buy" rating and issued a $65.00 price objective on shares of Applied Digital in a report on Thursday, April 23rd. Citigroup reissued a "market outperform" rating on shares of Applied Digital in a report on Tuesday, June 9th. Lake Street Capital upped their target price on Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Craig Hallum increased their price target on Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Finally, Northland Securities set a $82.00 price target on Applied Digital and gave the company an "outperform" rating in a research report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $70.56.

Applied Digital Price Performance

APLD stock opened at $46.59 on Friday. The firm has a market cap of $13.31 billion, a PE ratio of -62.96 and a beta of 5.69. Applied Digital Corporation has a 12 month low of $9.02 and a 12 month high of $50.72. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The firm has a 50 day simple moving average of $40.02 and a 200 day simple moving average of $33.47.

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

Applied Digital Company Profile

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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