Commonwealth Equity Services LLC Has $3.26 Million Stock Holdings in Applied Digital Corporation $APLD

Key Points

• Commonwealth Equity Services LLC increased its Applied Digital stake by 27.1% in the fourth quarter, ending with 132,898 shares worth about $3.26 million.
• Applied Digital announced a 15-year, 210 MW lease with a U.S.-based hyperscaler at its Delta Forge 2 campus, adding roughly $5.2 billion in contracted revenue and lifting its total contracted portfolio to about $36 billion.
• The company has been drawing more bullish analyst attention, with several firms raising price targets after the new lease deals, although Applied Digital also recently issued $1.59 billion in senior secured notes to fund expansion, adding financing risk.

Commonwealth Equity Services LLC grew its position in Applied Digital Corporation (NASDAQ:APLD - Free Report) by 27.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 132,898 shares of the company's stock after purchasing an additional 28,344 shares during the period. Commonwealth Equity Services LLC's holdings in Applied Digital were worth $3,259,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Teachers Retirement System of The State of Kentucky purchased a new stake in shares of Applied Digital in the third quarter valued at about $994,000. MRA Advisory Group purchased a new stake in shares of Applied Digital in the third quarter valued at about $978,000. Vanguard Group Inc. raised its holdings in shares of Applied Digital by 23.2% in the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company's stock valued at $406,547,000 after purchasing an additional 3,339,062 shares during the last quarter. Cannon Capital Management Inc. purchased a new stake in shares of Applied Digital in the fourth quarter valued at about $3,635,000. Finally, Mandatum Life Insurance Co Ltd purchased a new stake in shares of Applied Digital in the third quarter valued at about $924,000. Hedge funds and other institutional investors own 65.67% of the company's stock.

Key Applied Digital News

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

• Positive Sentiment: Applied Digital signed a 15-year, 210 MW lease with a U.S.-based investment-grade hyperscaler at its Delta Forge 2 campus, adding about $5.2 billion in contracted revenue and bringing total contracted portfolio value to roughly $36 billion across five campuses. Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
• Positive Sentiment: The company also signed a third hyperscaler lease in six weeks, further validating demand for its AI infrastructure and reinforcing visibility into future revenue. B. Riley pins APLD stock price at $66 after new lease signing
• Positive Sentiment: Analysts turned more bullish, with multiple firms raising price targets on the stock after the new lease announcements, signaling higher expected upside from current levels. Applied Digital Stock In Focus: Company Signs Fifth AI Campus Deal, Raises $1.59 Billion
• Neutral Sentiment: Applied Digital announced a $1.59 billion senior secured notes offering to fund the fourth building at Polaris Forge 1; while the debt raise supports growth, it also adds leverage and introduces financing execution risk. Applied Digital Announces Pricing of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
• Neutral Sentiment: The stock was also added to a Zacks Strong Sell list, which may temper enthusiasm, though this is outweighed today by the large contract wins and analyst upgrades. New Strong Sell Stocks for June 9th

Applied Digital Stock Performance

NASDAQ APLD opened at $41.91 on Wednesday. Applied Digital Corporation has a 52-week low of $9.02 and a 52-week high of $50.72. The company has a 50-day simple moving average of $36.85 and a 200 day simple moving average of $32.38. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The company has a market capitalization of $11.98 billion, a PE ratio of -56.63 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) 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 analysts' expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business's quarterly revenue was up 139.3% on a year-over-year basis. During the same quarter last year, the business posted ($0.08) EPS. On average, research analysts predict that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the firm's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 35,000 shares of company stock valued at $1,182,175 in the last quarter. Company insiders own 9.50% of the company's stock.

Analyst Ratings Changes

APLD has been the subject of several analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Lake Street Capital increased their target price on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday. Citigroup reiterated a "market outperform" rating on shares of Applied Digital in a report on Tuesday. Citizens Jmp increased their target price on shares of Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a report on Thursday, May 21st. Finally, Needham & Company LLC increased their price target on shares of Applied Digital from $66.00 to $83.00 and gave the company a "buy" rating in a research report on Tuesday. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $67.67.

Applied Digital 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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