The Manufacturers Life Insurance Company Cuts Position in Applied Digital Corporation $APLD

Key Points

• The Manufacturers Life Insurance Company cut its Applied Digital stake by 33.4% in the second quarter, selling 41,185 shares and retaining 82,234 shares valued at approximately $3.1 million. Institutional investors collectively own 65.67% of the company.
• Director Richard Nottenburg sold 75,000 shares for about $2.34 million, reducing his position by 35.99%; corporate insiders own 9.5% of the stock.
• Analyst sentiment remains a Moderate Buy, with an average price target of $68.15, although some firms recently downgraded the shares to “strong sell.” Applied Digital reported revenue growth of 406.3% year over year but missed quarterly EPS estimates, posting a loss of $0.39 per share.

The Manufacturers Life Insurance Company lowered its holdings in Applied Digital Corporation (NASDAQ:APLD - Free Report) by 33.4% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 82,234 shares of the company's stock after selling 41,185 shares during the quarter. The Manufacturers Life Insurance Company's holdings in Applied Digital were worth $3,067,000 as of its most recent filing with the SEC.

Several other institutional investors also recently made changes to their positions in the stock. Situational Awareness LP grew its stake in shares of Applied Digital by 14.1% during the 2nd quarter. Situational Awareness LP now owns 15,384,616 shares of the company's stock worth $574,000 after purchasing an additional 1,906,178 shares during the period. California State Teachers Retirement System lifted its stake in shares of Applied Digital by 3,718.0% in the second quarter. California State Teachers Retirement System now owns 11,121,928 shares of the company's stock valued at $414,848,000 after purchasing an additional 10,830,623 shares during the period. Equitec Proprietary Markets LLC purchased a new stake in Applied Digital during the second quarter worth about $312,349,000. Geode Capital Management LLC boosted its holdings 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 worth $154,151,000 after buying an additional 304,228 shares in the last quarter. Finally, Value Aligned Research Advisors LLC acquired a new position in Applied Digital during the fourth quarter worth about $138,380,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Richard Nottenburg sold 75,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the sale, the director owned 133,378 shares of the company's stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 9.50% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on APLD. Wall Street Zen cut shares of Applied Digital from a "sell" rating to a "strong sell" rating in a report on Sunday, August 30th. Lake Street Capital boosted their price target on Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th. Compass Point restated a "buy" rating and issued a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Morgan Stanley raised their price objective on Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Finally, Zacks Research cut Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 26th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $68.15.

Applied Digital Stock Performance

Shares of APLD opened at $26.42 on Monday. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The stock has a market cap of $7.70 billion, a P/E ratio of -29.69 and a beta of 5.72. The company has a 50-day moving average of $28.30 and a two-hundred day moving average of $32.79. Applied Digital Corporation has a 12-month low of $17.25 and a 12-month high of $50.72.

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

About Applied Digital

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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