Applied Digital (NASDAQ:APLD) Shares Gap Up - Time to Buy?

Applied Digital Co. (NASDAQ:APLD - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $13.86, but opened at $14.52. Applied Digital shares last traded at $14.02, with a volume of 21,503,318 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on APLD shares. Craig Hallum upped their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday, June 3rd. Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. B. Riley lifted their price target on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. Compass Point reissued a "neutral" rating and set a $13.00 price objective (up previously from $10.00) on shares of Applied Digital in a research report on Monday. Finally, Cantor Fitzgerald decreased their target price on Applied Digital from $14.00 to $7.00 and set an "overweight" rating on the stock in a report on Tuesday, April 15th. One analyst has rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $12.73.

Applied Digital Stock Performance

The business's fifty day simple moving average is $6.42 and its 200-day simple moving average is $7.58. The company has a market capitalization of $2.71 billion, a P/E ratio of -6.97 and a beta of 6.08. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Monday, April 14th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.05). Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The firm had revenue of $52.92 million during the quarter, compared to the consensus estimate of $62.91 million. During the same period last year, the firm posted ($0.24) earnings per share. As a group, equities analysts anticipate that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Rachel H. Lee sold 24,212 shares of the company's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total transaction of $169,484.00. Following the sale, the director now owns 83,613 shares of the company's stock, valued at $585,291. This represents a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 11.81% of the company's stock.

Institutional Trading of Applied Digital

Several hedge funds have recently made changes to their positions in the business. Vontobel Holding Ltd. boosted its stake in Applied Digital by 9.8% during the fourth quarter. Vontobel Holding Ltd. now owns 16,735 shares of the company's stock worth $128,000 after buying an additional 1,500 shares during the period. Corebridge Financial Inc. boosted its stake in shares of Applied Digital by 2.0% during the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock worth $546,000 after purchasing an additional 1,899 shares during the period. Wilmington Savings Fund Society FSB grew its holdings in Applied Digital by 100.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company's stock valued at $31,000 after purchasing an additional 2,000 shares during the last quarter. Wedbush Securities Inc. raised its position in Applied Digital by 14.8% in the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock worth $87,000 after purchasing an additional 2,000 shares during the period. Finally, Wellington Management Group LLP raised its position in Applied Digital by 11.7% in the 1st quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock worth $107,000 after purchasing an additional 2,001 shares during the period. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.