Applied Digital (NASDAQ:APLD) Trading Up 10.7% – Should You Buy?

Applied Digital Co. (NASDAQ:APLD)’s share price was up 10.7% during mid-day trading on Wednesday . The stock traded as high as $8.78 and last traded at $8.77. Approximately 10,155,628 shares changed hands during trading, an increase of 17% from the average daily volume of 8,647,539 shares. The stock had previously closed at $7.92.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Needham & Company LLC reissued a “buy” rating and issued a $11.00 price objective on shares of Applied Digital in a research note on Friday, November 1st. B. Riley raised their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a report on Friday, September 13th. Craig Hallum upped their target price on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. HC Wainwright boosted their price target on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a report on Wednesday, October 16th. Finally, Cantor Fitzgerald initiated coverage on Applied Digital in a research note on Friday, December 20th. They issued an “overweight” rating and a $15.00 price objective for the company. Seven investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $11.14.

Applied Digital Stock Performance

The company has a 50 day moving average price of $8.50 and a 200 day moving average price of $6.60. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The company has a market capitalization of $1.85 billion, a price-to-earnings ratio of -7.50 and a beta of 4.67.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The company had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same period in the prior year, the firm earned ($0.10) earnings per share. Applied Digital’s revenue for the quarter was up 67.2% on a year-over-year basis. Equities research analysts predict that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the sale, the director now owns 208,506 shares in the company, valued at approximately $1,670,133.06. This trade represents a 4.58 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the sale, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at $35,658,786. This trade represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 359,369 shares of company stock valued at $3,115,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of APLD. Bank of New York Mellon Corp boosted its stake in Applied Digital by 36.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock worth $1,814,000 after purchasing an additional 80,958 shares during the period. Commonwealth Equity Services LLC increased its holdings in shares of Applied Digital by 115.7% in the second quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company’s stock worth $397,000 after purchasing an additional 35,768 shares during the period. Van ECK Associates Corp boosted its stake in Applied Digital by 18.3% during the second quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock valued at $17,077,000 after buying an additional 443,699 shares during the period. Rhumbline Advisers raised its holdings in shares of Applied Digital by 30.0% in the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock valued at $834,000 after acquiring an additional 32,336 shares in the last quarter. Finally, Crumly & Associates Inc. bought a new stake in shares of Applied Digital during the 2nd quarter valued at about $110,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.