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

Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday . The stock had previously closed at $7.77, but opened at $9.53. Applied Digital shares last traded at $9.13, with a volume of 27,304,694 shares trading hands.

Analyst Ratings Changes

Several research firms have recently commented on APLD. Lake Street Capital increased their target price on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Roth Mkm restated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. HC Wainwright raised their target price on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Cantor Fitzgerald assumed coverage on shares of Applied Digital in a research report on Friday, December 20th. They set an “overweight” rating and a $15.00 price target for the company. Finally, Needham & Company LLC reiterated a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research report on Friday, November 1st. Seven research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, Applied Digital has an average rating of “Buy” and an average price target of $11.14.

Applied Digital Price Performance

The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The firm has a market cap of $1.92 billion, a price-to-earnings ratio of -7.76 and a beta of 4.78. The stock has a 50-day moving average of $8.70 and a two-hundred day moving average of $6.92.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 19,369 shares of the stock in a transaction that occurred on Thursday, November 7th. The shares were 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 directly owns 384,317 shares of the company’s stock, valued at $2,886,220.67. This 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, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the completion of the transaction, the director now owns 208,506 shares in the company, valued at approximately $1,670,133.06. This represents a 4.58 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 279,369 shares of company stock worth $2,525,561. 11.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of APLD. Bank of New York Mellon Corp increased its holdings in Applied Digital by 36.2% in the second quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock worth $1,814,000 after buying an additional 80,958 shares during the last quarter. Commonwealth Equity Services LLC increased its stake in shares of Applied Digital by 115.7% during the 2nd quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company’s stock worth $397,000 after purchasing an additional 35,768 shares during the last quarter. Rhumbline Advisers raised its holdings in shares of Applied Digital by 30.0% during the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock valued at $834,000 after purchasing an additional 32,336 shares in the last quarter. Headlands Technologies LLC increased its position in Applied Digital by 381.8% during the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after buying an additional 6,933 shares during the last quarter. Finally, ICA Group Wealth Management LLC lifted its position in shares of Applied Digital by 56.8% in the second quarter. ICA Group Wealth Management LLC now owns 18,750 shares of the company’s stock worth $112,000 after buying an additional 6,795 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.