Applied Digital (NASDAQ:APLD) Trading Up 6.1% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shot up 6.1% on Thursday . The stock traded as high as $31.69 and last traded at $31.14. 22,357,799 shares changed hands during trading, a decline of 37% from the average session volume of 35,451,309 shares. The stock had previously closed at $29.36.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on APLD. Northland Securities increased their target price on Applied Digital to $40.00 and gave the company an “outperform” rating in a report on Friday, October 10th. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Thursday, October 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. Needham & Company LLC reaffirmed a “buy” rating and set a $41.00 target price on shares of Applied Digital in a research note on Wednesday, October 29th. Finally, Lake Street Capital increased their price target on shares of Applied Digital from $18.00 to $37.00 and gave the stock a “buy” rating in a research report on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Performance

The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The stock has a market cap of $8.70 billion, a P/E ratio of -27.63 and a beta of 6.94. The firm’s 50-day moving average is $29.22 and its two-hundred day moving average is $18.69.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.08. The company had revenue of $64.22 million for the quarter, compared to analyst estimates of $52.25 million. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. Applied Digital’s quarterly revenue was up 84.3% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.15) EPS. As a group, research analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity at Applied Digital

In related news, Director Ella G. Benson sold 42,569 shares of the firm’s stock in a transaction that occurred on Wednesday, October 29th. The stock was sold at an average price of $35.30, for a total value of $1,502,685.70. Following the transaction, the director directly owned 69,256 shares of the company’s stock, valued at approximately $2,444,736.80. This trade represents a 38.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the business’s stock in a transaction that occurred on Friday, October 24th. The stock was sold at an average price of $34.08, for a total value of $3,408,000.00. Following the completion of the sale, the chief financial officer owned 158,912 shares of the company’s stock, valued at approximately $5,415,720.96. This trade represents a 38.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 328,035 shares of company stock valued at $11,376,479. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors have recently modified their holdings of APLD. BNP Paribas Financial Markets boosted its stake in Applied Digital by 24,356.8% during the 2nd 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 period. Situational Awareness LP acquired a new position in shares of Applied Digital during the first quarter worth approximately $22,680,000. Vanguard Group Inc. boosted its position in shares of Applied Digital by 23.2% in the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock valued at $406,547,000 after acquiring an additional 3,339,062 shares during the period. Two Sigma Investments LP bought a new stake in shares of Applied Digital in the third quarter valued at approximately $69,535,000. Finally, Partners Capital Investment Group LLP acquired a new stake in shares of Applied Digital in the first quarter worth $8,673,000. Institutional investors own 65.67% of the company’s stock.

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.