Situational Awareness LP Buys 1,906,178 Shares of Applied Digital Corporation $APLD

Key Points

• Situational Awareness LP increased its Applied Digital stake by 14.1%, buying 1.91 million shares to own 15.38 million shares, or approximately 5.28% of the company. Institutional investors and hedge funds collectively own 65.67% of the stock.
• Applied Digital reported quarterly revenue of $240.35 million, up 406.3% year over year, but its $0.39 per-share loss significantly exceeded analysts’ expected $0.09 loss. The company continues to post negative profitability metrics, including a 37.78% net margin.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $68.15 versus a recent share price of $25.91. However, a company director recently sold 75,000 shares worth about $2.34 million.

Situational Awareness LP raised its position in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) by 14.1% in the second quarter, according to its most recent filing with the SEC. The firm owned 15,384,616 shares of the company's stock after purchasing an additional 1,906,178 shares during the quarter. Applied Digital makes up approximately 0.0% of Situational Awareness LP's investment portfolio, making the stock its 23rd largest holding. Situational Awareness LP owned approximately 5.28% of Applied Digital worth $574,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the business. FNY Investment Advisers LLC acquired a new stake in Applied Digital during the second quarter worth approximately $37,000. Ameriflex Group Inc. acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. McMillan Office Inc. purchased a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Mcguire Capital Advisors Inc. bought a new position in Applied Digital during the 4th quarter valued at $27,000. Finally, Larson Financial Group LLC lifted its position in shares of Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after purchasing an additional 1,129 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Price Performance

APLD opened at $25.91 on Friday. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The stock's 50 day moving average price is $29.41 and its 200-day moving average price is $33.01. The stock has a market capitalization of $7.55 billion, a PE ratio of -29.11 and a beta of 5.72. Applied Digital Corporation has a 52-week low of $13.16 and a 52-week high of $50.72.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $240.35 million during the quarter, compared to analysts' expectations of $96.85 million. During the same period in the previous year, the company earned ($0.24) earnings per share. Applied Digital's revenue for the quarter was up 406.3% on a year-over-year basis. On average, equities research analysts predict that Applied Digital Corporation will post -1.09 EPS for the current year.

Insider Activity

In related news, Director Richard Nottenburg sold 75,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.50% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

APLD has been the topic of several research analyst reports. Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. B. Riley Financial reiterated a "buy" rating and issued a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Lake Street Capital boosted their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Citigroup reiterated a "market outperform" rating on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Morgan Stanley raised their price objective on shares of 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 research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $68.15.

About Applied Digital

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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