Applied Digital Corporation $APLD Shares Newly Bought by Two Seas Capital LP

Two Seas Capital LP acquired a new position in Applied Digital Corporation (NASDAQ:APLD) in the 3rd quarter, HoldingsChannel.com reports. The institutional investor acquired 50,000 shares of the company’s stock, valued at approximately $1,218,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Envestnet Asset Management Inc. boosted its position in shares of Applied Digital by 4.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock valued at $497,000 after purchasing an additional 596 shares in the last quarter. WINTON GROUP Ltd bought a new stake in Applied Digital in the second quarter worth approximately $209,000. Engineers Gate Manager LP acquired a new position in Applied Digital in the second quarter valued at approximately $4,350,000. Integrated Wealth Concepts LLC acquired a new position in Applied Digital in the second quarter valued at approximately $265,000. Finally, NewEdge Advisors LLC boosted its holdings in shares of Applied Digital by 35.1% during the 2nd quarter. NewEdge Advisors LLC now owns 81,134 shares of the company’s stock worth $3,026,000 after buying an additional 21,093 shares in the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital Stock Up 2.6%

Shares of Applied Digital stock traded up $0.64 during trading hours on Tuesday, reaching $25.34. The company’s stock had a trading volume of 22,554,712 shares, compared to its average volume of 22,575,412. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The stock’s fifty day simple moving average is $27.17 and its two-hundred day simple moving average is $32.57. The company has a market capitalization of $7.39 billion, a P/E ratio of -28.47 and a beta of 5.99. Applied Digital Corporation has a one year low of $19.00 and a one year high of $50.72.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million for 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%. Applied Digital’s revenue for the quarter was up 406.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.24) EPS. On average, research analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. B. Riley Financial reiterated a “buy” rating and issued a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Citigroup restated a “market outperform” rating on shares of Applied Digital in a report on Monday, August 3rd. Craig Hallum lifted their price target on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Finally, Needham & Company LLC restated a “buy” rating and issued a $83.00 target price on shares of Applied Digital in a research note on Tuesday, July 28th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $60.88.

Key Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital announced an agreement securing up to 1 gigawatt of potential power capacity in Finland, its first international development opportunity. The site could support a large-scale AI campus and gives the company additional long-term growth potential in Europe. Management said discussions with hyperscale customers are already underway. Applied Digital Secures Up to 1 GW of Potential Power Capacity in Finland
• Positive Sentiment: The company has continued expanding its domestic infrastructure, including bringing additional capacity online at Polaris Forge 1 and recently reaching a 250-megawatt online-capacity milestone. Investors view these additions as potential drivers of future AI and high-performance-computing revenue. Applied Digital Brings 75 MW Online at Polaris Forge 1
• Neutral Sentiment: Revenue expectations for the quarter are elevated because of rapid AI-infrastructure growth, making the earnings report and management’s outlook important near-term catalysts. Investors will focus on new customer contracts, development timelines, financing needs and the pace of capacity deployment. Applied Digital Q1 Earnings Preview
• Negative Sentiment: Analysts and market commentators continue to flag substantial debt, heavy capital spending and execution risk as Applied Digital funds its aggressive expansion. The company’s prior results included a larger-than-expected loss despite sharply higher revenue, highlighting that growth has not yet translated into profitability. Applied Digital Q1 Earnings Risks
• Negative Sentiment: Short interest is elevated, with approximately 21% of the company’s float sold short ahead of earnings. A disappointing report or cautious guidance could intensify selling, although strong results could also trigger short covering. Applied Digital Reports With 21% of Float Sold Short

Insider Buying and Selling at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director owned 133,378 shares of the company’s stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by corporate insiders.

About Applied Digital

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.