Applied Digital (NASDAQ:APLD) Shares Gap Up on Analyst Upgrade

Key Points

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Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares gapped up prior to trading on Thursday after Lake Street Capital raised their price target on the stock from $14.00 to $18.00. The stock had previously closed at $10.03, but opened at $12.57. Lake Street Capital currently has a buy rating on the stock. Applied Digital shares last traded at $13.78, with a volume of 56,748,481 shares.

A number of other equities research analysts have also recently weighed in on APLD. B. Riley upped their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a report on Wednesday, June 4th. Compass Point upgraded shares of Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 price objective on the stock in a report on Friday, July 25th. Craig Hallum upped their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Cantor Fitzgerald cut their price objective on shares of Applied Digital from $14.00 to $7.00 and set an "overweight" rating on the stock in a report on Tuesday, April 15th. Finally, HC Wainwright upped their price objective on shares of Applied Digital from $12.00 to $15.00 and gave the stock a "buy" rating in a report on Thursday. Twelve equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Applied Digital presently has an average rating of "Buy" and an average target price of $14.18.

Insider Transactions at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the sale, the director directly owned 83,613 shares of the company's stock, valued at approximately $585,291. This represents a 22.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in APLD. Teacher Retirement System of Texas purchased a new position in Applied Digital during the 1st quarter valued at approximately $139,000. Exchange Traded Concepts LLC grew its holdings in Applied Digital by 4.0% during the 1st quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock valued at $5,856,000 after buying an additional 39,945 shares in the last quarter. Register Financial Advisors LLC grew its holdings in Applied Digital by 26.2% during the 1st quarter. Register Financial Advisors LLC now owns 254,200 shares of the company's stock valued at $1,429,000 after buying an additional 52,700 shares in the last quarter. Wells Fargo & Company MN grew its holdings in Applied Digital by 96.6% during the 4th quarter. Wells Fargo & Company MN now owns 119,963 shares of the company's stock valued at $917,000 after buying an additional 58,943 shares in the last quarter. Finally, Vanguard Group Inc. grew its holdings in Applied Digital by 39.1% during the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock valued at $97,487,000 after buying an additional 3,587,619 shares in the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Price Performance

The firm has a market cap of $2.68 billion, a PE ratio of -10.94 and a beta of 6.04. The firm has a fifty day simple moving average of $10.39 and a two-hundred day simple moving average of $7.98. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.70 and a current ratio of 0.70.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, hitting analysts' consensus estimates of ($0.12). The firm had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. Applied Digital had a negative return on equity of 54.03% and a negative net margin of 107.22%. The company's quarterly revenue was up 41.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.14) EPS. Equities analysts predict that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

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.