Applied Digital (NASDAQ:APLD) Trading 7.9% Higher – Here’s Why

Shares of Applied Digital Co. (NASDAQ:APLD) traded up 7.9% on Tuesday . The stock traded as high as $9.92 and last traded at $9.83. 13,601,290 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 23,763,803 shares. The stock had previously closed at $9.11.

Wall Street Analyst Weigh In

APLD has been the subject of several recent research reports. Northland Securities boosted their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a report on Tuesday, February 4th. HC Wainwright lifted their target price on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, January 15th. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Wednesday, January 15th. Compass Point assumed coverage on Applied Digital in a research report on Tuesday, January 28th. They set a “buy” rating and a $10.00 price target for the company. Finally, Cantor Fitzgerald lowered their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 15th. Nine research analysts have rated the stock with a buy rating, According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $12.11.

Applied Digital Stock Performance

The firm has a market capitalization of $2.27 billion, a P/E ratio of -5.88 and a beta of 4.77. The company’s 50 day moving average is $8.45 and its 200-day moving average is $7.43. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.08. The company had revenue of $63.87 million for the quarter, compared to analysts’ expectations of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. Applied Digital’s quarterly revenue was up 51.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.05) earnings per share. As a group, equities analysts anticipate that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling

In other news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now directly owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This trade represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at $35,658,786. The trade was a 4.91 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 270,000 shares of company stock valued at $2,477,000. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wilmington Savings Fund Society FSB raised its position in Applied Digital by 100.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after buying an additional 2,000 shares during the last quarter. R Squared Ltd purchased a new stake in Applied Digital in the 4th quarter worth approximately $36,000. US Bancorp DE purchased a new position in shares of Applied Digital during the 4th quarter valued at $37,000. Jones Financial Companies Lllp bought a new position in shares of Applied Digital in the fourth quarter worth about $39,000. Finally, Spire Wealth Management purchased a new stake in Applied Digital during the 4th quarter valued at approximately $43,000. 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.