Applied Digital (NASDAQ:APLD) Shares Up 2.4% – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s share price rose 2.4% on Monday . The company traded as high as $7.34 and last traded at $7.29. Approximately 9,724,936 shares changed hands during trading, a decline of 60% from the average daily volume of 24,355,529 shares. The stock had previously closed at $7.12.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on APLD. Compass Point assumed coverage on Applied Digital in a report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target on the stock. Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Wednesday, January 15th. HC Wainwright increased their target price on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Lake Street Capital lifted their price target on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Finally, Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. Eight analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $11.13.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market capitalization of $1.64 billion, a PE ratio of -4.25 and a beta of 4.78. The firm’s 50 day moving average price is $8.80 and its 200-day moving average price is $7.10.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The company had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. During the same period last year, the company earned ($0.05) earnings per share. Applied Digital’s quarterly revenue was up 51.3% compared to the same quarter last year. On average, research analysts expect that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 19,369 shares of the stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $7.51, for a total value of $145,461.19. Following the completion of the sale, the director now owns 384,317 shares of the company’s stock, valued at approximately $2,886,220.67. This trade represents a 4.80 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at $35,658,786. This trade represents a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 289,369 shares of company stock valued at $2,622,461 over the last quarter. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Van ECK Associates Corp increased its stake in Applied Digital by 113.8% during the fourth quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock worth $33,649,000 after purchasing an additional 2,344,572 shares during the period. Geode Capital Management LLC increased its stake in Applied Digital by 48.7% during the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after buying an additional 1,002,862 shares during the period. Barclays PLC lifted its holdings in Applied Digital by 736.8% during the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after buying an additional 428,428 shares in the last quarter. Wolverine Asset Management LLC acquired a new position in shares of Applied Digital in the fourth quarter worth $3,056,000. Finally, State Street Corp increased its position in shares of Applied Digital by 14.0% during the third quarter. State Street Corp now owns 2,337,267 shares of the company’s stock worth $19,282,000 after acquiring an additional 286,852 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

About Applied Digital

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.