Wellington Management Group LLP Sells 214,540 Shares of Applied Digital Corporation $APLD

Key Points

• Wellington Management reduced its Applied Digital stake by 17.5%, selling 214,540 shares in the second quarter and retaining 1.01 million shares valued at approximately $37.8 million. Institutional investors collectively own 65.67% of the company.
• Applied Digital reported a quarterly loss of $0.39 per share, missing estimates by $0.30, despite revenue rising 406.3% year over year to $240.35 million. Analysts expect the company to post a full-year loss of $1.09 per share.
• APLD has a “Moderate Buy” consensus rating and an average analyst price target of $68.15, although insider Richard Nottenburg sold 75,000 shares and the stock recently opened at $26.37.

Wellington Management Group LLP decreased its position in shares of Applied Digital Corporation (NASDAQ:APLD - Free Report) by 17.5% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,014,085 shares of the company's stock after selling 214,540 shares during the quarter. Wellington Management Group LLP owned 0.35% of Applied Digital worth $37,825,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently made changes to their positions in the company. FNY Investment Advisers LLC bought a new position in Applied Digital in the 2nd quarter valued at approximately $37,000. Ameriflex Group Inc. bought a new stake in shares of Applied Digital in the 4th quarter worth $25,000. McMillan Office Inc. purchased a new position in shares of Applied Digital in the fourth quarter worth $25,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Applied Digital in the fourth quarter worth $27,000. Finally, Larson Financial Group LLC lifted its holdings 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. Institutional investors own 65.67% of the company's stock.

Insider Activity at Applied Digital

In other news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction that occurred on 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. This represents a 35.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by insiders.

Applied Digital Stock Performance

APLD stock opened at $26.37 on Friday. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. Applied Digital Corporation has a 1 year low of $13.16 and a 1 year high of $50.72. The company has a market cap of $7.69 billion, a P/E ratio of -29.63 and a beta of 5.72. The stock's fifty day moving average price is $29.15 and its 200-day moving average price is $32.97.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm had revenue of $240.35 million for the quarter, compared to analysts' expectations of $96.85 million. During the same quarter last year, the company posted ($0.24) EPS. The firm's revenue was up 406.3% compared to the same quarter last year. On average, equities analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Analysts Set New Price Targets

APLD has been the topic of several recent analyst reports. Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Northland Securities set a $82.00 target price on Applied Digital and gave the stock an "outperform" rating in a research report on Wednesday, June 17th. Zacks Research cut shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 26th. Lake Street Capital raised their price target on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Finally, Citizens Jmp lifted their price target on shares of Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a research note on Thursday, May 21st. Three investment 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 issued a Sell rating to the company. According to MarketBeat.com, Applied Digital has an average rating of "Moderate Buy" and an average price target 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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