Applied Digital (NASDAQ:APLD) Shares Up 6.2% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD)’s stock price traded up 6.2% during mid-day trading on Monday . The stock traded as high as $36.24 and last traded at $35.63. 23,890,282 shares traded hands during trading, a decline of 11% from the average session volume of 26,713,924 shares. The stock had previously closed at $33.55.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Roth Mkm reaffirmed a “buy” rating and set a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Northland Securities set a $56.00 price objective on Applied Digital in a research report on Wednesday, January 28th. Zacks Research downgraded Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, April 8th. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Finally, Arete Research initiated coverage on Applied Digital in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Applied Digital currently has an average rating of “Moderate Buy” and an average target price of $44.33.

Applied Digital Price Performance

The company has a fifty day simple moving average of $28.28 and a two-hundred day simple moving average of $30.01. 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 company has a market capitalization of $10.18 billion, a price-to-earnings ratio of -48.15 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The firm had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same quarter in the previous year, the company earned ($0.08) earnings per share. The company’s quarterly revenue was up 139.3% on a year-over-year basis. As a group, research analysts anticipate that Applied Digital Corporation will post -0.52 earnings per share for the current year.

Insider Transactions at Applied Digital

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 value of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares of the company’s stock, valued at $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last quarter. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds have recently added to or reduced their stakes in the business. TFR Capital LLC. boosted its holdings in Applied Digital by 425.3% in the first quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock worth $9,497,000 after purchasing an additional 301,954 shares during the period. Principal Financial Group Inc. boosted its holdings in Applied Digital by 18.3% in the first quarter. Principal Financial Group Inc. now owns 15,521 shares of the company’s stock worth $368,000 after purchasing an additional 2,400 shares during the period. Teachers Retirement System of The State of Kentucky boosted its holdings in Applied Digital by 68.9% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 48,963 shares of the company’s stock worth $1,162,000 after purchasing an additional 19,980 shares during the period. Global Assets Advisory LLC acquired a new position in Applied Digital in the first quarter worth $53,000. Finally, Hsbc Holdings PLC boosted its holdings in Applied Digital by 6.2% in the first quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company’s stock worth $28,377,000 after purchasing an additional 72,460 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

About Applied Digital

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.