Applied Digital (NASDAQ:APLD) Stock Price Up 4.1% – Should You Buy?

Applied Digital Corporation (NASDAQ:APLD)’s share price shot up 4.1% during trading on Monday . The stock traded as high as $28.94 and last traded at $28.21. 24,814,221 shares were traded during mid-day trading, a decline of 30% from the average session volume of 35,582,336 shares. The stock had previously closed at $27.10.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on APLD shares. HC Wainwright increased their price objective on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a report on Friday, October 10th. B. Riley reiterated a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Citigroup restated an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. Compass Point initiated coverage on shares of Applied Digital in a report on Monday, September 15th. They set a “buy” rating on the stock. Finally, Wall Street Zen downgraded shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $26.20.

Applied Digital Trading Up 4.7%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a market cap of $8.18 billion, a P/E ratio of -25.98 and a beta of 6.94. The firm has a 50 day simple moving average of $28.86 and a 200 day simple moving average of $18.43.

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

Insider Activity

In other news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction on Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the transaction, the director owned 59,400 shares of the company’s stock, valued at approximately $1,972,080. This represents a 28.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Richard N. Nottenburg sold 34,375 shares of Applied Digital stock in a transaction on Friday, October 24th. The shares were sold at an average price of $33.23, for a total value of $1,142,281.25. Following the sale, the director directly owned 263,612 shares of the company’s stock, valued at $8,759,826.76. This represents a 11.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 328,035 shares of company stock worth $11,376,479. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of APLD. ProShare Advisors LLC grew its stake in Applied Digital by 1.0% in the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock worth $841,000 after buying an additional 376 shares in the last quarter. PNC Financial Services Group Inc. raised its position in shares of Applied Digital by 7.4% during the 3rd quarter. PNC Financial Services Group Inc. now owns 5,951 shares of the company’s stock valued at $137,000 after buying an additional 408 shares in the last quarter. Wedbush Securities Inc. lifted its holdings in shares of Applied Digital by 5.7% during the 3rd quarter. Wedbush Securities Inc. now owns 10,785 shares of the company’s stock worth $247,000 after acquiring an additional 585 shares during the last quarter. Allworth Financial LP grew its position in Applied Digital by 70.0% in the third quarter. Allworth Financial LP now owns 1,746 shares of the company’s stock worth $40,000 after acquiring an additional 719 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its position in Applied Digital by 51.8% in the third quarter. Farther Finance Advisors LLC now owns 2,306 shares of the company’s stock worth $53,000 after acquiring an additional 787 shares in the last quarter. 65.67% of the stock is currently owned by 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.