Applied Digital Corporation (NASDAQ:APLD – Get Free Report) shares were up 9.8% on Tuesday. The stock traded as high as $17.99 and last traded at $17.81. Approximately 26,366,330 shares changed hands during mid-day trading, an increase of 14% from the average daily volume of 23,137,373 shares. The stock had previously closed at $16.22.
Applied Digital News Summary
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Applied Digital joined a broader technology-sector rally, with data-center and cloud stocks rising. The move also reflects a rebound in AI infrastructure shares after recent financing jitters weighed on the group; the reports point to sector sentiment, not a new company-specific announcement, as the main near-term lift. Article: Applied Digital Stock Jumps: What’s Going On? Article: Applied Digital Surges as AI Data Center Stocks Rebound
- Negative Sentiment: Funding uncertainty could limit the recovery. Reports say roughly 800 MW of planned capacity still needs financing, while another article highlights the burden of interest costs relative to rental revenue. Investors may remain wary of the capital required to build out AI data centers. Article: Applied Digital’s Interest Bill and Financing Gap
- Negative Sentiment: Valuation and financing concerns have also fueled questions about whether the shares’ price is supported by current data-center revenue. B. Riley Financial reportedly cut its price target, adding to the cautious backdrop. Article: Has Applied Digital Become Overvalued? Article: Applied Digital Price Target Cut
Analyst Ratings Changes
A number of equities analysts recently commented on the company. Wall Street Zen downgraded Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Needham & Company LLC cut their price objective on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday, October 8th. UBS Group reaffirmed a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Finally, Rothschild & Co Redburn set a $22.00 price target on Applied Digital and gave the company a “neutral” rating in a report on Monday, September 21st. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Applied Digital presently has a consensus rating of “Moderate Buy” and an average price target of $57.75.
Applied Digital Trading Up 9.8%
The firm has a market cap of $5.39 billion, a P/E ratio of -10.86 and a beta of 5.99. The firm has a fifty day moving average of $23.84 and a 200-day moving average of $31.25. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56.
Applied Digital (NASDAQ:APLD – Get Free Report) last announced its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The company had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the previous year, the company posted ($0.03) earnings per share. The company’s revenue for the quarter was up 367.8% compared to the same quarter last year. Equities research analysts forecast that Applied Digital Corporation will post -2.17 earnings per share for the current year.
Insider Buying and Selling at Applied Digital
In other news, CEO Wes Cummins purchased 55,803 shares of the company’s stock in a transaction on Friday, October 16th. The shares were bought at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the completion of the purchase, the chief executive officer owned 5,874,453 shares of the company’s stock, valued at $105,975,132.12. This trade represents a 0.96% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard Nottenburg sold 31,250 shares of Applied Digital stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $21.84, for a total value of $682,500.00. Following the sale, the director directly owned 102,128 shares in the company, valued at approximately $2,230,475.52. This trade represents a 23.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 9.50% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of APLD. FNY Investment Advisers LLC bought a new position in Applied Digital during the second quarter valued at approximately $37,000. Bartlett & CO. Wealth Management LLC grew its position in Applied Digital by 244.3% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock worth $29,000 after acquiring an additional 855 shares in the last quarter. Ancora Advisors LLC bought a new stake in Applied Digital in the second quarter worth approximately $56,000. Creative Financial Designs Inc. ADV increased its stake in shares of Applied Digital by 691.8% during the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock worth $57,000 after purchasing an additional 1,342 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Applied Digital by 28.5% during the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after purchasing an additional 464 shares in the last quarter. Institutional investors own 65.67% of the company’s stock.
About Applied Digital
Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.
Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.
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