Applied Digital (NASDAQ:APLD) Sets New 12-Month High - Time to Buy?

Key Points

• Applied Digital Corporation reached a new 12-month high, trading at $24.85, following a significant increase in share price by 19.4%.
• Several analysts have issued optimistic ratings, with Roth Capital and B. Riley both recommending a "buy," and maintaining a consensus price target of $15.64.
• CEO Wes Cummins sold 400,000 shares, reducing his stake by 13.07%, while insiders have collectively sold over 500,000 shares in the last quarter.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $24.85 and last traded at $24.45, with a volume of 49131704 shares changing hands. The stock had previously closed at $20.48.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on APLD. Roth Capital reiterated a "buy" rating on shares of Applied Digital in a research note on Monday, June 2nd. B. Riley raised their target price on shares of Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. Compass Point started coverage on Applied Digital in a research report on Monday, September 15th. They set a "buy" rating for the company. Finally, JMP Securities lifted their price objective on Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research note on Tuesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating and twelve have given a Buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $15.64.

Applied Digital Stock Up 19.4%

The company's 50 day moving average price is $14.78 and its two-hundred day moving average price is $10.03. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36. The stock has a market cap of $6.58 billion, a P/E ratio of -22.43 and a beta of 6.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, hitting the consensus estimate of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The firm had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. During the same quarter in the prior year, the business earned ($0.14) EPS. The business's quarterly revenue was up 41.3% on a year-over-year basis. Equities analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Transactions at Applied Digital

In other news, CEO Wes Cummins sold 400,000 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $6,104,000.00. Following the transaction, the chief executive officer owned 2,659,379 shares in the company, valued at $40,582,123.54. This represents a 13.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $305,200.00. Following the sale, the director owned 297,987 shares in the company, valued at approximately $4,547,281.62. The trade was a 6.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 506,250 shares of company stock worth $7,713,675 in the last quarter. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Ameriprise Financial Inc. raised its stake in Applied Digital by 40.6% during the 4th quarter. Ameriprise Financial Inc. now owns 61,629 shares of the company's stock worth $471,000 after acquiring an additional 17,794 shares during the period. Nuveen Asset Management LLC raised its stake in Applied Digital by 39.1% during the 4th quarter. Nuveen Asset Management LLC now owns 744,073 shares of the company's stock worth $5,685,000 after acquiring an additional 209,258 shares during the period. ProShare Advisors LLC raised its stake in Applied Digital by 143.0% during the 4th quarter. ProShare Advisors LLC now owns 53,998 shares of the company's stock worth $413,000 after acquiring an additional 31,778 shares during the period. Two Sigma Investments LP bought a new stake in Applied Digital during the 4th quarter worth approximately $1,943,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Applied Digital by 271.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 343,260 shares of the company's stock worth $2,623,000 after acquiring an additional 250,944 shares during the period. Institutional investors own 65.67% of the company's stock.

Applied Digital Company Profile

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.

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