Applied Digital (NASDAQ:APLD) Shares Gap Up – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $6.48, but opened at $6.92. Applied Digital shares last traded at $6.59, with a volume of 5,899,302 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on APLD shares. Needham & Company LLC restated a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a report on Wednesday, January 15th. Craig Hallum boosted their price objective 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 objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, January 15th. Compass Point started coverage on Applied Digital in a report on Tuesday. They set a “buy” rating and a $10.00 price objective for the company. Finally, Cantor Fitzgerald reduced their price objective on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Wednesday, January 15th. Eight investment analysts have rated the stock with a buy rating, According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $11.13.

Applied Digital Trading Up 0.2 %

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $1.45 billion, a P/E ratio of -3.75 and a beta of 4.78. The firm has a 50 day moving average of $9.01 and a 200-day moving average of $7.09.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The business had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same period in the previous year, the business earned ($0.05) earnings per share. The company’s revenue was up 51.3% on a year-over-year basis. On average, equities research analysts predict that Applied Digital Co. will post -0.8 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the transaction, the chief executive officer now directly owns 3,875,955 shares in the company, valued at approximately $35,658,786. This represents a 4.91 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard N. Nottenburg sold 19,369 shares of the company’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $7.51, for a total transaction of $145,461.19. Following the transaction, the director now owns 384,317 shares of the company’s stock, valued at $2,886,220.67. This trade represents a 4.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 289,369 shares of company stock worth $2,622,461 over the last three months. Corporate insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of APLD. R Squared Ltd acquired a new stake in Applied Digital in the fourth quarter valued at $36,000. Spire Wealth Management acquired a new stake in Applied Digital in the fourth quarter valued at $43,000. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Applied Digital in the third quarter valued at $59,000. KBC Group NV bought a new stake in Applied Digital during the fourth quarter valued at $55,000. Finally, Beacon Harbor Wealth Advisors Inc. bought a new stake in Applied Digital during the third quarter valued at $83,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.