Applied Digital (NASDAQ:APLD) Shares Up 7.4% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD)’s stock price shot up 7.4% during trading on Wednesday. The stock traded as high as $18.60 and last traded at $17.91. 27,829,814 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 23,394,389 shares. The stock had previously closed at $16.68.

Recent Applied Digital Headlines

These are some of the APLD headlines that stood out recently:

• Positive Sentiment: CoreWeave’s results and financing news have revived interest in AI data-center stocks, supporting APLD alongside sector peers. Article: Applied Digital Rallies as CoreWeave’s Results Revive the AI Data Center Trade
• Negative Sentiment: Reports flag APLD’s substantial business exposure to CoreWeave, including a 400-megawatt lease reportedly valued at about $11 billion. CoreWeave’s debt trading at distressed yields raises concern that tenant credit problems could threaten confidence in Applied Digital’s growth and financing plans. Article: Applied Digital Carries $11 Billion in CoreWeave Exposure
• Negative Sentiment: Analyst concerns about leverage intensified, with a Seeking Alpha article downgrading the shares and Morgan Stanley reportedly cutting its price target. These assessments may reinforce worries about APLD’s debt burden and capital needs. Article: Applied Digital—Leverage Risks Can No Longer Be Ignored Article: Applied Digital Stock Price Target Cut by Morgan Stanley

Analysts Set New Price Targets

A number of research firms recently issued reports on APLD. UBS Group reiterated a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Roth Capital set a $35.00 price target on Applied Digital and gave the stock a “buy” rating in a report on Wednesday, October 21st. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Finally, Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the company a “neutral” rating in a research note on Monday, September 21st. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $56.42.

Applied Digital Trading Up 7.4%

The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The firm has a market cap of $5.42 billion, a PE ratio of -10.92 and a beta of 5.58. The business has a fifty day moving average price of $22.57 and a 200 day moving average price of $30.66.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.29. The firm had revenue of $300.39 million during the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The firm’s revenue was up 367.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.03) earnings per share. Analysts forecast that Applied Digital Corporation will post -2.17 EPS for the current year.

Insider Transactions at Applied Digital

In related news, CEO Wes Cummins acquired 55,803 shares of Applied Digital stock in a transaction dated Friday, October 16th. The stock was acquired at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the transaction, the chief executive officer owned 5,874,453 shares of the company’s stock, valued at $105,975,132.12. This represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, President Jason Gechen Zhang bought 300,000 shares of the stock in a transaction dated Friday, October 16th. The stock was bought at an average price of $18.86 per share, with a total value of $5,658,000.00. Following the acquisition, the president owned 2,839,227 shares in the company, valued at approximately $53,547,821.22. This represents a 11.81% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently made changes to their positions in APLD. Bartlett & CO. Wealth Management LLC increased its position in shares of Applied Digital by 244.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock worth $29,000 after purchasing an additional 855 shares in the last quarter. FNY Investment Advisers LLC purchased a new stake in shares of Applied Digital in the 2nd quarter valued at about $37,000. Advisors Asset Management Inc. acquired a new stake in shares of Applied Digital in the 3rd quarter valued at about $43,000. Root Financial Partners LLC acquired a new stake in shares of Applied Digital in the 3rd quarter valued at about $52,000. Finally, Global Assets Advisory LLC acquired a new stake in shares of Applied Digital in the 1st quarter valued at about $53,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

About Applied Digital

Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.