Applied Digital (NASDAQ:APLD) Shares Gap Up – Should You Buy?

Applied Digital Corporation (NASDAQ:APLD)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $27.05, but opened at $28.58. Applied Digital shares last traded at $28.12, with a volume of 4,073,109 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms recently commented on APLD. Roth Mkm restated a “buy” rating on shares of Applied Digital in a research report on Tuesday, February 17th. Texas Capital raised Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. B. Riley Financial increased their target price on Applied Digital to $53.00 and gave the stock a “buy” rating in a report on Friday, January 9th. Citigroup restated an “outperform” rating on shares of Applied Digital in a research note on Wednesday, January 28th. Finally, Wall Street Zen raised Applied Digital from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $37.00.

Applied Digital Trading Up 3.3%

The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The business’s fifty day moving average is $32.86 and its two-hundred day moving average is $28.44. The firm has a market cap of $7.81 billion, a price-to-earnings ratio of -51.70 and a beta of 7.20.

Insider Transactions at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction on Monday, January 12th. The stock was sold at an average price of $38.54, for a total value of $385,400.00. Following the completion of the sale, the director directly owned 200,859 shares of the company’s stock, valued at approximately $7,741,105.86. This trade represents a 4.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 12,000 shares of the business’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the sale, the director owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. The trade was a 4.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 over the last quarter. Corporate insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in shares of Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after buying an additional 6,445,908 shares during the period. Hood River Capital Management LLC lifted its holdings in Applied Digital by 2.8% in the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock valued at $220,120,000 after buying an additional 592,314 shares during the period. Situational Awareness LP boosted its stake in Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after acquiring an additional 5,274,905 shares during the last quarter. Geode Capital Management LLC boosted its stake in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after acquiring an additional 304,228 shares during the last quarter. Finally, Value Aligned Research Advisors LLC acquired a new stake in Applied Digital during the 4th quarter worth $138,380,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.