Engineers Gate Manager LP Acquires New Holdings in Applied Digital Corporation $APLD

Key Points

• Engineers Gate Manager LP acquired 116,610 shares of Applied Digital in the second quarter, valued at approximately $4.35 million. Institutional investors and hedge funds collectively own 65.67% of the company.
• Director Richard Nottenburg sold 75,000 shares for roughly $2.34 million, reducing his ownership by 35.99%; insiders retain a 9.5% stake.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $68.15, despite Applied Digital missing quarterly EPS estimates while reporting 406.3% year-over-year revenue growth.

Engineers Gate Manager LP bought a new position in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 116,610 shares of the company's stock, valued at approximately $4,350,000.

Several other hedge funds have also recently bought and sold shares of the stock. Ameriflex Group Inc. acquired a new position in shares of Applied Digital in the fourth quarter valued at approximately $25,000. McMillan Office Inc. acquired a new stake in shares of Applied Digital during the fourth quarter worth $25,000. Larson Financial Group LLC lifted its position in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after acquiring an additional 1,129 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in Applied Digital in the 2nd quarter valued at $26,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in Applied Digital in the 4th quarter worth $27,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 9.50% of the company's stock.

Analyst Upgrades and Downgrades

APLD has been the subject of a number of research reports. Compass Point reiterated a "buy" rating and set a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Zacks Research lowered Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 26th. Craig Hallum upped their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. B. Riley Financial reiterated a "buy" rating and set a $75.00 price objective (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Finally, Morgan Stanley lifted their target price on Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Stock Up 2.5%

Shares of APLD stock opened at $26.42 on Friday. The firm's fifty day moving average price is $28.30 and its two-hundred day moving average price is $32.77. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. Applied Digital Corporation has a 1 year low of $17.25 and a 1 year high of $50.72. The firm has a market capitalization of $7.70 billion, a P/E ratio of -29.69 and a beta of 5.72.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). The business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The company's quarterly revenue was up 406.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.24) earnings per share. On average, equities analysts predict that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Applied Digital Company Profile

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

The company's facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.

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