Applied Digital (NASDAQ:APLD) Trading Up 2.9% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) shares were up 2.9% during mid-day trading on Thursday . The company traded as high as $7.50 and last traded at $7.47. Approximately 3,726,318 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 26,463,895 shares. The stock had previously closed at $7.26.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on APLD shares. HC Wainwright boosted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Cantor Fitzgerald decreased their target price on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a report on Wednesday, January 15th. Compass Point began coverage on shares of Applied Digital in a report on Tuesday, January 28th. They set a “buy” rating and a $10.00 price target for the company. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research report on Monday, February 24th. Finally, Northland Securities increased their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 4th. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $12.11.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The firm has a market capitalization of $1.58 billion, a price-to-earnings ratio of -4.09 and a beta of 4.69. The stock has a 50 day moving average price of $7.93 and a two-hundred day moving average price of $7.91.

Applied Digital (NASDAQ:APLD) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The company 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 company posted ($0.05) EPS. Applied Digital’s revenue was up 51.3% compared to the same quarter last year. As a group, analysts expect that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the sale, the director now directly owns 342,923 shares in the company, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Victory Capital Management Inc. raised its holdings in shares of Applied Digital by 72.5% in the 3rd quarter. Victory Capital Management Inc. now owns 19,535 shares of the company’s stock valued at $161,000 after purchasing an additional 8,212 shares in the last quarter. Intech Investment Management LLC acquired a new stake in Applied Digital in the third quarter valued at $115,000. Charles Schwab Investment Management Inc. lifted its holdings in Applied Digital by 36.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after buying an additional 240,554 shares during the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of Applied Digital by 14.4% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company’s stock worth $355,000 after acquiring an additional 5,423 shares in the last quarter. Finally, Quantbot Technologies LP purchased a new position in shares of Applied Digital in the 3rd quarter valued at about $283,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.