Applied Digital (NASDAQ:APLD) Shares Gap Up - What's Next?

Key Points

• Applied Digital shares gapped up at the open, rising from a prior close of $25.79 to an opening price of $27.31 and last trading around $28.07 on heavy volume.
• Wall Street sentiment remains generally positive, with analysts holding a Moderate Buy consensus and an average price target of $70.56, though one firm recently downgraded the stock to sell.
• Recent filing data showed insider selling and mixed institutional activity, while hedge funds continue to own a large majority of the company at 65.67%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $25.79, but opened at $27.31. Applied Digital shares last traded at $28.0730, with a volume of 4,390,325 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. B. Riley Financial reaffirmed a "buy" rating and issued a $66.00 target price (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Craig Hallum boosted their price target on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Finally, Compass Point reaffirmed a "buy" rating and set a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $70.56.

Applied Digital Price Performance

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock's 50-day moving average price is $40.36 and its 200-day moving average price is $34.47. The company has a market capitalization of $7.91 billion, a price-to-earnings ratio of -37.44 and a beta of 5.67.

Insider Buying and Selling at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the sale, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares in the company, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 35,000 shares of company stock valued at $1,182,175 over the last three months. Insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently added to or reduced their stakes in APLD. Newbridge Financial Services Group Inc. raised its holdings in shares of Applied Digital by 8.6% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock valued at $93,000 after purchasing an additional 300 shares during the last quarter. Concurrent Investment Advisors LLC boosted its holdings in Applied Digital by 1.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock worth $523,000 after purchasing an additional 318 shares during the last quarter. Brookstone Capital Management grew its position in Applied Digital by 3.6% in the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock valued at $227,000 after purchasing an additional 321 shares in the last quarter. Independent Advisor Alliance grew its position in Applied Digital by 4.6% in the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock valued at $226,000 after purchasing an additional 407 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in Applied Digital by 28.5% in the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company's stock valued at $78,000 after buying an additional 464 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

About Applied Digital

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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