Sovereign Financial Group Inc. Acquires Shares of 19,262 Applied Digital Corporation $APLD

Key Points

• Sovereign Financial Group Inc. has acquired 19,262 shares of Applied Digital Corporation (NASDAQ: APLD), valued at approximately $194,000.
• Recent insider trading saw CEO Wes Cummins selling 400,000 shares for $6.1 million, reducing his stake by 13.07%.
• Analysts have raised price targets for Applied Digital, with Northland Securities setting a new target of $40.00 and Lake Street Capital increasing it from $18.00 to $37.00.

Sovereign Financial Group Inc. acquired a new stake in Applied Digital Corporation (NASDAQ:APLD - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 19,262 shares of the company's stock, valued at approximately $194,000.

A number of other large investors also recently modified their holdings of the company. Corebridge Financial Inc. increased its position in shares of Applied Digital by 2.0% in the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock valued at $546,000 after purchasing an additional 1,899 shares during the last quarter. Wedbush Securities Inc. increased its position in shares of Applied Digital by 14.8% in the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock valued at $87,000 after purchasing an additional 2,000 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Applied Digital by 11.7% in the 1st quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock valued at $107,000 after purchasing an additional 2,001 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its position in shares of Applied Digital by 29.4% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,778 shares of the company's stock valued at $77,000 after purchasing an additional 3,127 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its position in shares of Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after purchasing an additional 3,542 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Applied Digital

In other news, CEO Wes Cummins sold 400,000 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $6,104,000.00. Following the completion of the sale, the chief executive officer owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. This trade represents a 13.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the firm'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 $1,144,500.00. Following the completion of the sale, the chief financial officer owned 201,800 shares of the company's stock, valued at $3,079,468. This trade represents a 27.10% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 506,250 shares of company stock worth $7,713,675. Company insiders own 9.50% of the company's stock.

Analysts Set New Price Targets

APLD has been the topic of a number of recent analyst reports. Northland Securities increased their price objective on shares of Applied Digital to $40.00 and gave the company an "outperform" rating in a research report on Friday. Lake Street Capital increased their target price on shares of Applied Digital from $18.00 to $37.00 and gave the company a "buy" rating in a research report on Friday. Compass Point assumed coverage on shares of Applied Digital in a research report on Monday, September 15th. They issued a "buy" rating on the stock. Craig Hallum increased their target price on shares of Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a research report on Monday, August 18th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $22.10.

Applied Digital Stock Up 16.0%

Shares of NASDAQ:APLD opened at $33.99 on Monday. The stock has a market cap of $9.51 billion, a P/E ratio of -30.08 and a beta of 6.77. The firm has a fifty day moving average price of $18.93 and a 200 day moving average price of $11.88. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. Applied Digital Corporation has a 1-year low of $3.31 and a 1-year high of $39.07.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued 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. The firm had revenue of $38.01 million during the quarter, compared to analysts' expectations of $52.25 million. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. Applied Digital's quarterly revenue was up 84.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.15) EPS. Sell-side analysts predict that Applied Digital Corporation will post -0.96 EPS for the current 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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