Applied Digital (NASDAQ:APLD) Sees Large Volume Increase on Earnings Beat

Applied Digital Co. (NASDAQ:APLD) saw unusually-strong trading volume on Thursday after the company announced better than expected quarterly earnings. Approximately 6,229,477 shares traded hands during trading, a decline of 5% from the previous session’s volume of 6,563,512 shares.The stock last traded at $7.11 and had previously closed at $7.40.

The company reported ($0.15) EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.13. Applied Digital had a negative return on equity of 107.05% and a negative net margin of 74.95%. The firm had revenue of $60.70 million for the quarter, compared to analysts’ expectations of $54.85 million. During the same quarter in the prior year, the firm earned ($0.10) EPS. The business’s revenue for the quarter was up 67.2% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on APLD. Needham & Company LLC reiterated a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research note on Thursday. HC Wainwright reiterated a “buy” rating and set a $5.00 price objective on shares of Applied Digital in a research note on Thursday, August 29th. Craig Hallum boosted their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday. Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research note on Thursday. Finally, B. Riley upped their target price on Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Six equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $9.67.

Insiders Place Their Bets

In other news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, September 5th. The stock was sold at an average price of $5.50, for a total transaction of $55,000.00. Following the transaction, the director now directly owns 218,506 shares in the company, valued at approximately $1,201,783. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 20.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently modified their holdings of the company. B. Riley Wealth Advisors Inc. boosted its holdings in Applied Digital by 66.1% during the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock valued at $4,609,000 after acquiring an additional 308,223 shares during the period. Alight Capital Management LP purchased a new stake in Applied Digital during the 2nd quarter valued at about $3,570,000. Marshall Wace LLP purchased a new stake in Applied Digital during the 2nd quarter valued at about $720,000. Woodmont Investment Counsel LLC boosted its holdings in Applied Digital by 4.2% during the 1st quarter. Woodmont Investment Counsel LLC now owns 250,319 shares of the company’s stock valued at $1,071,000 after acquiring an additional 10,149 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in Applied Digital by 70.2% during the 1st quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company’s stock valued at $26,434,000 after acquiring an additional 2,547,485 shares during the period. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Price Performance

The company has a market capitalization of $1.56 billion, a PE ratio of -6.20 and a beta of 4.56. The firm has a fifty day moving average of $5.48 and a two-hundred day moving average of $4.77. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 1.14.

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.