Dimensional Fund Advisors LP Acquires Shares of 82,968 Applied Digital Corporation $APLD

Key Points

• Dimensional Fund Advisors acquired 82,968 Applied Digital shares worth approximately $1.97 million. Institutional investors collectively own 65.67% of the company, with Vanguard and Situational Awareness among the largest holders.
• Applied Digital posted revenue of $240.35 million, up 406.3% year over year, but missed earnings estimates with a loss of $0.39 per share versus the expected $0.09 loss.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $68.15 price target, though concerns include high debt, heavy capital needs, elevated valuation and a recent insider sale.

Dimensional Fund Advisors LP bought a new position in Applied Digital Corporation (NASDAQ:APLD - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 82,968 shares of the company's stock, valued at approximately $1,970,000.

A number of other hedge funds also recently made changes to their positions in APLD. Vanguard Group Inc. raised its holdings in shares of Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after acquiring an additional 6,445,908 shares in the last quarter. Situational Awareness LP increased its position in Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock worth $278,034,000 after purchasing an additional 5,274,905 shares during the last quarter. Geode Capital Management LLC raised its stake in Applied Digital by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Value Aligned Research Advisors LLC purchased a new stake in Applied Digital during the fourth quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets raised its stake in Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Strong demand for AI computing capacity lifted shares of several data-center and neocloud companies, including CoreWeave, Nebius and Super Micro. The sector rally reinforces the potential market opportunity for Applied Digital’s AI-focused data-center business. CoreWeave Jumps 18% as AI Capacity Sells Out
• Positive Sentiment: A report on Riot Platforms’ proposed 20-year, $9.1 billion Anthropic data-center lease highlights how large technology customers are committing substantial capital to AI infrastructure. The development is a favorable read-through for data-center operators such as Applied Digital, although the agreement involves Riot rather than APLD. Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
• Neutral Sentiment: Applied Digital is expected to report earnings Thursday, giving investors a near-term catalyst. Markets will likely focus on data-center bookings, project funding, revenue growth and progress in converting AI demand into profitable operations. Applied Digital to Release Earnings on Thursday
• Negative Sentiment: Zacks added Applied Digital to its Rank #5, or “Strong Sell,” list, creating an additional source of selling pressure and signaling deteriorating analyst expectations. New Strong Sell Stocks for August 13th
• Negative Sentiment: Analysts cited heavy capital requirements, high debt, intensifying competition, weaker earnings estimates and an elevated valuation after APLD’s substantial one-year rally. These concerns suggest investors may be questioning whether future AI growth can justify the company’s risk profile. APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Lake Street Capital increased their price target on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Compass Point reissued a "buy" rating and set a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. Citigroup restated a "market outperform" rating on shares of Applied Digital in a research report on Monday, August 3rd. Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Finally, B. Riley Financial reiterated a "buy" rating and issued a $75.00 target price (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $68.15.

Applied Digital Stock Down 1.7%

Shares of NASDAQ APLD opened at $30.62 on Friday. Applied Digital Corporation has a 1 year low of $13.16 and a 1 year high of $50.72. The firm has a 50-day simple moving average of $34.20 and a two-hundred day simple moving average of $33.92. The company has a market cap of $8.92 billion, a P/E ratio of -34.40 and a beta of 5.75. 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 (NASDAQ:APLD - Get Free Report) last released its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $240.35 million during the quarter, compared to analysts' expectations of $96.85 million. During the same quarter in the previous year, the business earned ($0.24) EPS. The business's revenue for the quarter was up 406.3% on a year-over-year basis. Research analysts anticipate that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Transactions at Applied Digital

In other news, Director Richard N. 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 transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 9.50% of the stock is currently owned by insiders.

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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