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

Applied Digital Corporation (NASDAQ:APLD) shares gapped up before the market opened on Monday . The stock had previously closed at $27.85, but opened at $29.16. Applied Digital shares last traded at $28.30, with a volume of 4,782,626 shares trading hands.

Analysts Set New Price Targets

APLD has been the subject of a number of research reports. Craig Hallum increased their price target on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research report on Sunday, October 19th. Citigroup restated an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Finally, Lake Street Capital raised their price objective on Applied Digital from $18.00 to $37.00 and gave the company a “buy” rating in a research report on Friday, October 10th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Applied Digital presently has an average rating of “Moderate Buy” and an average price target of $26.20.

Applied Digital Price Performance

The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29. The company has a market cap of $7.18 billion, a PE ratio of -22.76 and a beta of 6.94. The firm has a 50 day moving average of $29.03 and a two-hundred day moving average of $20.39.

Applied Digital (NASDAQ:APLD) last released its 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 business had revenue of $64.22 million for the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The company’s revenue for the quarter was up 84.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.15) earnings per share. Research analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction that occurred on Friday, October 24th. The stock was sold at an average price of $33.20, for a total value of $803,871.60. Following the transaction, the director directly owned 59,400 shares of the company’s stock, valued at approximately $1,972,080. This represents a 28.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Chuck Hastings sold 50,000 shares of Applied Digital stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $35.69, for a total value of $1,784,500.00. Following the completion of the sale, the director directly owned 451,612 shares of the company’s stock, valued at approximately $16,118,032.28. The trade was a 9.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 328,035 shares of company stock valued at $11,376,479. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Several large investors have recently modified their holdings of APLD. Scientech Research LLC purchased a new position in shares of Applied Digital in the first quarter worth approximately $806,000. Voya Investment Management LLC raised its position in Applied Digital by 403.4% in the third quarter. Voya Investment Management LLC now owns 1,464,909 shares of the company’s stock worth $33,605,000 after acquiring an additional 1,173,929 shares during the period. Chelsea Counsel Co. purchased a new position in shares of Applied Digital during the 2nd quarter worth $582,000. Lake Hills Wealth Management LLC purchased a new position in shares of Applied Digital during the 2nd quarter worth $184,000. Finally, KLP Kapitalforvaltning AS grew its position in shares of Applied Digital by 27.7% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 41,500 shares of the company’s stock valued at $418,000 after acquiring an additional 9,000 shares during the period. Institutional investors own 65.67% of the company’s stock.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.