Applied Digital (NASDAQ:APLD) Trading 8.2% Higher – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price shot up 8.2% during trading on Thursday . The company traded as high as $26.80 and last traded at $26.38. 23,907,206 shares changed hands during trading, an increase of 4% from the average session volume of 22,900,314 shares. The stock had previously closed at $24.39.

Analyst Ratings Changes

APLD has been the subject of a number of research analyst reports. Needham & Company LLC reiterated a “buy” rating and issued a $83.00 price target on shares of Applied Digital in a report on Tuesday, July 28th. Citizens Jmp raised their price objective on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Lake Street Capital boosted their target price on shares of Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Finally, Northland Securities set a $82.00 target price on shares of Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $66.50.

Applied Digital Price Performance

The firm has a market capitalization of $7.69 billion, a price-to-earnings ratio of -29.64 and a beta of 5.72. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The business has a 50-day moving average price of $27.83 and a two-hundred day moving average price of $32.68.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The company’s revenue for the quarter was up 406.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.24) EPS. As a group, research analysts forecast that Applied Digital Corporation will post -1.09 EPS for the current year.

Insider Activity

In other news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Hedge funds have recently bought and sold shares of the company. Osbon Capital Management LLC bought a new position in Applied Digital in the 4th quarter worth about $28,000. Bartlett & CO. Wealth Management LLC raised its holdings in shares of Applied Digital by 244.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock valued at $29,000 after buying an additional 855 shares during the last quarter. FNY Investment Advisers LLC acquired a new position in shares of Applied Digital during the second quarter worth approximately $37,000. Clearstead Advisors LLC acquired a new position in shares of Applied Digital during the fourth quarter worth approximately $49,000. Finally, Vermillion Wealth Management Inc. bought a new position in Applied Digital in the 4th quarter worth approximately $49,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.