Insider Selling: Applied Digital (NASDAQ:APLD) CEO Sells 400,000 Shares of Stock

Key Points

• Wes Cummins, CEO of Applied Digital, sold 400,000 shares at an average price of $15.26, resulting in a total of $6.1 million, which decreased his ownership position by 13.07%.
• Applied Digital reported (-$0.12 EPS) for its latest quarter, matching consensus estimates, with revenue of $38.01 million, while year-over-year revenue increased by 41.3%.
• Despite recent share sales, several analysts have upgraded their ratings on Applied Digital, with a consensus target price of $15.64 and one "strong buy" rating among the assessments.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) CEO Wes Cummins sold 400,000 shares of the company's stock in a transaction that occurred 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 transaction, the chief executive officer owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. The trade was a 13.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website.

Applied Digital Stock Performance

Shares of NASDAQ:APLD traded up $1.12 during trading on Tuesday, hitting $15.03. 21,177,101 shares of the company were exchanged, compared to its average volume of 36,871,137. The company has a market cap of $3.93 billion, a PE ratio of -13.79 and a beta of 6.65. Applied Digital Corporation has a 52-week low of $3.31 and a 52-week high of $17.60. The stock has a 50 day moving average of $12.90 and a 200 day moving average of $9.23. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, hitting the consensus estimate of ($0.12). The firm had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The business's quarterly revenue was up 41.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.14) earnings per share. As a group, equities research analysts predict that Applied Digital Corporation will post -0.96 EPS for the current year.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently made changes to their positions in the business. Hood River Capital Management LLC lifted its holdings in shares of Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after purchasing an additional 592,314 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Applied Digital by 5.7% during the first quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock valued at $75,819,000 after purchasing an additional 730,978 shares during the last quarter. Situational Awareness LP lifted its holdings in shares of Applied Digital by 63.3% during the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock valued at $66,379,000 after purchasing an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after purchasing an additional 5,198,223 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Applied Digital by 24.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock valued at $26,799,000 after purchasing an additional 514,896 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

APLD has been the topic of a number of recent research reports. Needham & Company LLC raised their price objective on Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Roth Capital reaffirmed a "buy" rating on shares of Applied Digital in a research note on Monday, June 2nd. HC Wainwright raised their price objective on Applied Digital from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Monday, August 25th. JMP Securities raised their price objective on Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research note on Tuesday, June 3rd. Finally, Compass Point raised Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 price objective on the stock in a research note on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the stock. According to data from MarketBeat.com, Applied Digital presently has a consensus rating of "Buy" and an average target price of $15.64.

Applied Digital Company 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.