Applied Digital (NASDAQ:APLD) Shares Gap Up on Earnings Beat

Shares of Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $7.77, but opened at $9.53. Applied Digital shares last traded at $9.13, with a volume of 27,304,694 shares.

The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. The firm had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The company’s revenue for the quarter was up 51.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.05) EPS.

Analysts Set New Price Targets

APLD has been the topic of several recent research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a report on Wednesday. Craig Hallum lifted their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Lake Street Capital increased their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. HC Wainwright boosted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $11.29.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 19,369 shares of the business’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $7.51, for a total value of $145,461.19. Following the completion of the sale, the director now directly owns 384,317 shares of the company’s stock, valued at $2,886,220.67. The trade was a 4.80 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares in the company, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 269,369 shares of company stock valued at $2,445,461 in the last quarter. 11.81% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of APLD. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in shares of Applied Digital during the third quarter worth about $59,000. Beacon Harbor Wealth Advisors Inc. acquired a new position in Applied Digital during the 3rd quarter valued at about $83,000. Wealth Enhancement Advisory Services LLC bought a new stake in Applied Digital during the 3rd quarter worth approximately $88,000. Gunderson Capital Management Inc. purchased a new stake in shares of Applied Digital in the fourth quarter worth approximately $83,000. Finally, Chesapeake Capital Corp IL bought a new position in shares of Applied Digital in the third quarter valued at approximately $94,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Stock Performance

The company has a 50-day moving average of $8.77 and a 200-day moving average of $6.95. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

Applied Digital Company Profile

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.