Hennion & Walsh Asset Management Inc. Raises Stock Position in Applied Digital Corporation $APLD

Hennion & Walsh Asset Management Inc. grew its stake in shares of Applied Digital Corporation (NASDAQ:APLD) by 102.3% in the 2nd quarter, HoldingsChannel.com reports. The fund owned 41,787 shares of the company’s stock after acquiring an additional 21,130 shares during the period. Hennion & Walsh Asset Management Inc.’s holdings in Applied Digital were worth $1,559,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares during the period. Situational Awareness LP grew its position in shares of Applied Digital by 18.9% during the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock worth $319,978,000 after buying an additional 2,139,378 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Applied Digital by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after buying an additional 304,228 shares during the period. Value Aligned Research Advisors LLC purchased a new position in shares of Applied Digital during the fourth quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets raised its holdings in shares of Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after acquiring an additional 5,198,223 shares in the last quarter. Institutional investors own 65.67% of the company’s stock.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Strong forecasts from AI infrastructure companies CoreWeave and Super Micro, along with CoreWeave’s reported capacity sellout, reinforced expectations for sustained demand for data centers and computing power. That optimism provided a favorable read-through for Applied Digital’s data-center and AI infrastructure business. CoreWeave Jumps 18% as AI Capacity Sells Out
• Positive Sentiment: Broad gains across neocloud stocks and a newly introduced ETF focused on the group could increase investor attention and capital flows toward companies involved in AI computing infrastructure, benefiting sentiment around APLD. CoreWeave & Nebius Are Soaring
• Neutral Sentiment: Commentary highlighting a potential bull-case price of $68 versus a bear case of $16 underscores the unusually wide range of outcomes investors see for Applied Digital, reflecting both significant AI-growth potential and substantial execution risk. APLD Stock Prediction: $68 Bull Case vs. $16 Bear Case
• Negative Sentiment: Analysts and market commentary flagged heavy capital requirements, elevated debt, intensifying competition, weaker earnings estimates and an expensive valuation as risks to the stock’s rally. These concerns are particularly important given Applied Digital’s recent earnings miss despite sharply higher revenue. APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?

Wall Street Analyst Weigh In

APLD has been the topic of several recent research reports. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a report on Monday, August 3rd. Needham & Company LLC reaffirmed a “buy” rating and issued a $83.00 price target on shares of Applied Digital in a research report on Tuesday, July 28th. Citizens Jmp increased their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research note on Thursday, May 21st. Compass Point reissued a “buy” rating and set a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Finally, Lake Street Capital boosted their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Price Performance

Shares of APLD stock opened at $31.15 on Thursday. The stock’s 50-day moving average is $34.47 and its 200 day moving average is $33.97. Applied Digital Corporation has a 1-year low of $13.16 and a 1-year high of $50.72. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The company has a market cap of $9.08 billion, a P/E ratio of -35.00 and a beta of 5.75.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The firm had revenue of $240.35 million during the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business’s revenue for the quarter was up 406.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. Research analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 75,000 shares of Applied Digital 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 of the company’s stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 9.50% of the stock is currently owned by insiders.

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.