Applied Digital (NASDAQ:APLD) Shares Gap Up - Here's Why

Key Points

• APLD gapped up before the market opened — prior close $27.85, opened $29.16 and last traded $28.30 on volume of 4,782,626 shares, with the 50‑day average ($29.34) well above the 200‑day ($20.20) showing recent momentum.
• Analyst consensus is a “Moderate Buy” (1 Strong Buy, 11 Buy, 1 Sell) with an average price target of $26.20, though some firms have raised targets to about $39–$41.
• Applied Digital reported an earnings beat (EPS -$0.03 vs -$0.11 est) and revenue of $64.22M (+84.3% YoY), but remains unprofitable (negative net margin 111.29%); insiders sold 328,035 shares (~$11.38M) while institutions own 65.67% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $27.85, but opened at $29.16. Applied Digital shares last traded at $28.30, with a volume of 4,782,626 shares trading hands.

Analyst Ratings Changes

Several research analysts have recently commented on APLD shares. B. Riley reiterated a "buy" rating on shares of Applied Digital in a report on Wednesday, October 22nd. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a research report on Sunday, October 19th. Craig Hallum boosted their price objective on Applied Digital to $39.00 and gave the company a "buy" rating in a research report on Thursday, October 23rd. Needham & Company LLC reissued a "buy" rating and set a $41.00 price objective on shares of Applied Digital in a research note on Wednesday, October 29th. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $26.20.

Applied Digital Trading Up 2.2%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a market capitalization of $7.95 billion, a P/E ratio of -25.19 and a beta of 6.94. The stock has a 50-day moving average price of $29.34 and a two-hundred day moving average price of $20.20.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.11) by $0.08. The company had revenue of $64.22 million during the quarter, compared to analyst estimates of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The firm's revenue was up 84.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.15) earnings per share. On average, research analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 9,375 shares of the stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $35.91, for a total value of $336,656.25. Following the completion of the transaction, the director owned 249,237 shares of the company's stock, valued at approximately $8,950,100.67. This represents a 3.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the sale, the director owned 69,256 shares in the company, valued at $2,444,736.80. This represents a 38.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 328,035 shares of company stock worth $11,376,479. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hood River Capital Management LLC raised its stake in Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after buying an additional 592,314 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Applied Digital by 23.2% during the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company's stock valued at $406,547,000 after acquiring an additional 3,339,062 shares in the last quarter. Situational Awareness LP raised its position in shares of Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after purchasing an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Applied Digital by 20.2% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company's stock worth $73,388,000 after purchasing an additional 537,839 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

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.

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