Mountain Capital Investment Advisors Inc. Purchases New Shares in Applied Digital Corporation $APLD

Key Points

• Mountain Capital Investment Advisors Inc. purchased 11,666 shares of Applied Digital Corporation during the second quarter, valued at approximately $114,000, indicating increased institutional interest in the company.
• Multiple analyst upgrades have boosted Applied Digital's price targets significantly, with Craig Hallum raising its price objective to $23.00 and Northland Securities increasing it to $40.00, reflecting positive market sentiment.
• Insider transactions revealed a significant sell-off, with the CFO and CEO of Applied Digital selling shares totaling $7.7 million, suggesting a potential reduction in personal investment amidst ongoing company performance evaluation.

Mountain Capital Investment Advisors Inc. purchased a new stake in Applied Digital Corporation (NASDAQ:APLD - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 11,666 shares of the company's stock, valued at approximately $114,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of the business. Vanguard Personalized Indexing Management LLC purchased a new stake in Applied Digital in the 2nd quarter valued at $102,000. Sovereign Financial Group Inc. purchased a new stake in Applied Digital in the 2nd quarter valued at $194,000. SLT Holdings LLC purchased a new stake in Applied Digital in the 2nd quarter valued at $176,000. Blair William & Co. IL raised its position in Applied Digital by 42.6% in the 2nd quarter. Blair William & Co. IL now owns 138,163 shares of the company's stock valued at $1,391,000 after purchasing an additional 41,253 shares during the last quarter. Finally, Clear Creek Financial Management LLC raised its position in Applied Digital by 56.1% in the 2nd quarter. Clear Creek Financial Management LLC now owns 78,383 shares of the company's stock valued at $789,000 after purchasing an additional 28,177 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Craig Hallum boosted their price objective on shares of Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a research note on Monday, August 18th. Citigroup reissued an "outperform" rating on shares of Applied Digital in a research note on Thursday, October 9th. Northland Securities boosted their price objective on shares of Applied Digital to $40.00 and gave the company an "outperform" rating in a research note on Friday, October 10th. Needham & Company LLC boosted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Finally, HC Wainwright boosted their price objective on shares of Applied Digital from $20.00 to $40.00 and gave the company a "buy" rating in a research note on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $22.10.

Insider Transactions at Applied Digital

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the transaction, the chief financial officer directly owned 201,800 shares of the company's stock, valued at $3,079,468. This represents a 27.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Wes Cummins sold 400,000 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the transaction, the chief executive officer directly owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. This trade represents a 13.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock valued at $7,713,675 in the last ninety days. 9.50% of the stock is currently owned by company insiders.

Applied Digital Stock Performance

NASDAQ:APLD opened at $34.24 on Monday. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. Applied Digital Corporation has a fifty-two week low of $3.31 and a fifty-two week high of $40.20. The stock has a market cap of $9.58 billion, a PE ratio of -30.30 and a beta of 6.77. The firm's fifty day simple moving average is $21.05 and its 200-day simple moving average is $12.92.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $38.01 million for the quarter, compared to analysts' expectations of $52.25 million. During the same period in the prior year, the company posted ($0.15) EPS. The business's revenue for the quarter was up 84.3% on a year-over-year basis. Analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Applied Digital Profile

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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