Applied Digital (NASDAQ:APLD) CEO Wes Cummins Purchases 55,803 Shares of Stock

Key Points

• CEO Wes Cummins purchased 55,803 Applied Digital shares at an average price of $18.04, investing approximately $1.01 million and increasing his stake by 0.96% to 5.87 million shares.
• Applied Digital reported quarterly revenue of $300.39 million, up 367.8% year over year, and an adjusted loss of $0.01 per share that exceeded analysts’ expectations.
• Institutional investors own 65.67% of the company, while Wall Street maintains a “Moderate Buy” consensus rating with an average price target of $62.25, despite sharply differing analyst views.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) CEO Wes Cummins acquired 55,803 shares of Applied Digital stock in a transaction on Friday, October 16th. The shares were purchased at an average cost of $18.04 per share, for a total transaction of $1,006,686.12. Following the acquisition, the chief executive officer owned 5,874,453 shares in the company, valued at approximately $105,975,132.12. This represents a 0.96% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Applied Digital Price Performance

NASDAQ APLD opened at $18.05 on Monday. The stock has a fifty day moving average of $26.11 and a 200-day moving average of $32.36. The stock has a market capitalization of $5.46 billion, a P/E ratio of -11.01 and a beta of 5.99. Applied Digital Corporation has a 52 week low of $17.65 and a 52 week high of $50.72. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The company had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the previous year, the company posted ($0.03) earnings per share. The firm's quarterly revenue was up 367.8% on a year-over-year basis. On average, equities research analysts forecast that Applied Digital Corporation will post -2.06 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Situational Awareness LP grew its stake in shares of Applied Digital by 18.9% during the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock worth $319,978,000 after purchasing an additional 2,139,378 shares during the period. Equitec Proprietary Markets LLC bought a new stake in Applied Digital in the second quarter valued at about $312,349,000. Hsbc Holdings PLC acquired a new position in Applied Digital in the fourth quarter valued at about $29,510,000. Sei Investments Co. lifted its stake in Applied Digital by 33.0% in the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock valued at $25,964,000 after buying an additional 271,618 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Applied Digital by 32.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company's stock worth $21,681,000 after buying an additional 143,308 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Morgan Stanley set a $41.00 price objective on Applied Digital and gave the stock an "equal weight" rating in a report on Friday, October 9th. Wall Street Zen lowered shares of Applied Digital from a "sell" rating to a "strong sell" rating in a research note on Sunday, August 30th. B. Riley Financial reiterated a "buy" rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a research report on Monday, August 3rd. UBS Group reissued a "buy" rating on shares of Applied Digital in a research note on Thursday, October 8th. Finally, Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the company a "neutral" rating in a report on Monday, September 21st. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Applied Digital currently has a consensus rating of "Moderate Buy" and a consensus price target of $62.25.

Applied Digital Company Profile

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company's business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

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