Two Seas Capital LP Makes New Investment in Applied Digital Corporation $APLD

Key Points

• Two Seas Capital LP acquired 500,000 shares of Applied Digital (NASDAQ:APLD) in Q2 — about $5.04 million — representing roughly 0.19% ownership and the fund's 27th-largest holding.
• Applied Digital beat quarter estimates with a ($0.03) EPS vs. ($0.11) expected and reported revenue of $64.22M, up 84.3% year-over-year.
• Analysts' consensus is a Moderate Buy with an average target of $26.20, while insiders have sold 328,035 shares (~$11.38M) in the past 90 days and now own 9.5% of the company.

Two Seas Capital LP acquired a new stake in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 500,000 shares of the company's stock, valued at approximately $5,035,000. Applied Digital accounts for about 0.1% of Two Seas Capital LP's investment portfolio, making the stock its 27th biggest holding. Two Seas Capital LP owned approximately 0.19% of Applied Digital at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in APLD. Flagship Harbor Advisors LLC grew its holdings in Applied Digital by 6.0% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock worth $160,000 after buying an additional 900 shares in the last quarter. Corebridge Financial Inc. lifted its holdings in shares of Applied Digital by 2.0% in the first 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 in the last quarter. Wellington Management Group LLP boosted its position in shares of Applied Digital by 11.7% in the first quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock worth $107,000 after buying an additional 2,001 shares during the period. Ensign Peak Advisors Inc grew its holdings in shares of Applied Digital by 3.7% during the second quarter. Ensign Peak Advisors Inc now owns 60,700 shares of the company's stock valued at $611,000 after buying an additional 2,150 shares in the last quarter. Finally, Teacher Retirement System of Texas raised its position in Applied Digital by 10.2% during the second quarter. Teacher Retirement System of Texas now owns 27,252 shares of the company's stock valued at $274,000 after buying an additional 2,515 shares during the period. Institutional investors own 65.67% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Craig Hallum increased their price objective on Applied Digital to $39.00 and gave the stock a "buy" rating in a research note on Thursday, October 23rd. Wall Street Zen lowered shares of Applied Digital from a "hold" rating to a "sell" rating in a research report on Sunday, October 19th. B. Riley reaffirmed a "buy" rating on shares of Applied Digital in a research report on Wednesday, October 22nd. HC Wainwright upped 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. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $26.20.

Applied Digital Trading Up 4.7%

NASDAQ:APLD opened at $29.36 on Thursday. The company has a market capitalization of $8.18 billion, a P/E ratio of -25.98 and a beta of 6.94. The stock's 50 day moving average price is $28.86 and its 200 day moving average price is $18.43. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. Applied Digital Corporation has a 52 week low of $3.31 and a 52 week high of $40.20.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, beating analysts' consensus estimates of ($0.11) by $0.08. The business had revenue of $64.22 million for the quarter, compared to the consensus estimate 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 revenue for the quarter was up 84.3% on a year-over-year basis. During the same quarter last year, the firm earned ($0.15) EPS. On average, research analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, Director Chuck Hastings sold 50,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 29th. The stock was sold at an average price of $35.69, for a total value of $1,784,500.00. Following the transaction, the director directly owned 451,612 shares of the company's stock, valued at approximately $16,118,032.28. This trade represents a 9.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Rachel H. Lee sold 24,213 shares of the stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the transaction, the director owned 59,400 shares in the company, valued at approximately $1,972,080. This trade represents a 28.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 328,035 shares of company stock worth $11,376,479 in the last 90 days. Company insiders own 9.50% of the company's stock.

About Applied Digital

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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