Applied Digital (NASDAQ:APLD) Trading Up 1.7% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) shot up 1.7% on Wednesday . The company traded as high as $7.18 and last traded at $7.13. 3,296,112 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 26,598,998 shares. The stock had previously closed at $7.01.

Wall Street Analyst Weigh In

Several analysts have weighed in on APLD shares. Northland Securities raised their price target on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a research note on Monday, February 24th. Compass Point initiated coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target for the company. HC Wainwright raised their price objective 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. Finally, Cantor Fitzgerald dropped their price objective on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Wednesday, January 15th. Nine analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital presently has an average rating of “Buy” and an average target price of $12.11.

Applied Digital Price Performance

The firm’s 50 day simple moving average is $8.01 and its two-hundred day simple moving average is $7.90. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The firm has a market capitalization of $1.56 billion, a P/E ratio of -4.05 and a beta of 4.69.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping 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 firm had revenue of $63.87 million for the quarter, compared to the consensus estimate of $62.41 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. The company’s quarterly revenue was up 51.3% on a year-over-year basis. As a group, analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the transaction, the director now directly owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of APLD. Charles Schwab Investment Management Inc. grew its position in shares of Applied Digital by 36.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after buying an additional 240,554 shares during the last quarter. Quadrature Capital Ltd bought a new stake in Applied Digital in the third quarter valued at $545,000. Rhumbline Advisers boosted its holdings in Applied Digital by 68.7% in the fourth quarter. Rhumbline Advisers now owns 258,892 shares of the company’s stock valued at $1,978,000 after acquiring an additional 105,428 shares in the last quarter. Exchange Traded Concepts LLC raised its holdings in Applied Digital by 37.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company’s stock worth $7,656,000 after purchasing an additional 273,666 shares in the last quarter. Finally, Barclays PLC raised its holdings in Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after purchasing an additional 428,428 shares in the last quarter. Hedge funds and other institutional investors 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.