Applied Digital (NASDAQ:APLD) Shares Up 2.7% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price rose 2.7% during trading on Thursday . The company traded as high as $33.56 and last traded at $32.29. 16,491,720 shares were traded during trading, a decline of 34% from the average session volume of 24,907,971 shares. The stock had previously closed at $31.44.

Analyst Upgrades and Downgrades

Several research firms have issued reports on APLD. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a report on Monday, June 8th. Northland Securities set a $82.00 price objective on Applied Digital and gave the company an “outperform” rating in a report on Wednesday, June 17th. B. Riley Financial reissued a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Finally, Needham & Company LLC boosted their target price on Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $70.56.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The firm has a market cap of $8.90 billion, a price-to-earnings ratio of -42.09 and a beta of 5.67. The stock’s 50 day simple moving average is $41.61 and its 200-day simple moving average is $34.34.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company’s quarterly revenue was up 139.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.08) earnings per share. Equities research analysts anticipate that Applied Digital Corporation will post -0.7 EPS for the current fiscal year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 35,000 shares of company stock worth $1,182,175. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently bought and sold shares of APLD. Noble Wealth Management PBC purchased a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. Albion Financial Group UT acquired a new position in Applied Digital during the fourth quarter valued at $25,000. Activest Wealth Management acquired a new position in Applied Digital during the fourth quarter valued at $25,000. Ameriflex Group Inc. purchased a new stake in Applied Digital in the fourth quarter valued at $25,000. Finally, McMillan Office Inc. purchased a new stake in Applied Digital in the fourth quarter valued at $25,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.