Applied Digital (NASDAQ:APLD) Shares Gap Up - Should You Buy?

Key Points

• Applied Digital Corporation's shares opened at $14.88, gapping up from a previous close of $14.09, with a current trading volume of 11,862,213 shares.
• Twelve analysts rated the stock as a "buy" and one as a "strong buy", with a consensus target price of $14.18.
• The company reported a revenue increase of 41.3% year-over-year, despite posting an EPS of ($0.12), meeting analysts' expectations.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $14.09, but opened at $14.88. Applied Digital shares last traded at $14.92, with a volume of 11,862,213 shares.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on APLD. Roth Capital restated a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. Citizens Jmp upgraded shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective for the company in a report on Thursday, May 22nd. HC Wainwright raised their price objective on shares of Applied Digital from $12.00 to $15.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Finally, Craig Hallum reiterated a "buy" rating on shares of Applied Digital in a report on Monday. Twelve research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, Applied Digital currently has a consensus rating of "Buy" and a consensus target price of $14.18.

Applied Digital Price Performance

The business's 50 day moving average is $11.45 and its two-hundred day moving average is $8.44. The firm has a market capitalization of $4.26 billion, a PE ratio of -14.94 and a beta of 6.17. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.12). The business had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. Applied Digital's quarterly revenue was up 41.3% on a year-over-year basis. During the same period last year, the firm posted ($0.14) earnings per share. As a group, research analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 11,250 shares of the stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $14.22, for a total transaction of $159,975.00. Following the transaction, the director directly owned 317,987 shares in the company, valued at $4,521,775.14. This trade represents a 3.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 transaction of $169,484.00. Following the transaction, the director owned 83,613 shares in the company, valued at $585,291. The trade was a 22.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.81% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Atlantic Union Bankshares Corp bought a new position in Applied Digital during the second quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. purchased a new position in Applied Digital in the 2nd quarter worth approximately $26,000. PNC Financial Services Group Inc. bought a new position in shares of Applied Digital in the first quarter worth approximately $28,000. Geneos Wealth Management Inc. grew its holdings in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after purchasing an additional 3,542 shares during the last quarter. Finally, Ameriflex Group Inc. bought a new position in shares of Applied Digital in the second quarter worth approximately $42,000. 65.67% of the stock is currently owned by institutional investors.

About Applied Digital

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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