Applied Digital (NASDAQ:APLD) Shares Up 2.2% - Still a Buy?

Key Points

• Applied Digital shares rose 2.2% during midday trading, reaching as high as $47.78 before last trading at $46.59. Volume was lighter than usual, with 14.5 million shares traded versus a 25.5 million average.
• Wall Street sentiment remains upbeat: several analysts reiterated or raised bullish ratings, and the stock now carries a consensus “Moderate Buy” with an average target price of $70.56.
• The company recently posted strong revenue growth of 139.3% year over year, but it still missed EPS estimates and remains unprofitable. Insiders have also been selling shares, with 35,000 sold over the last 90 days.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) was up 2.2% during mid-day trading on Thursday . The company traded as high as $47.78 and last traded at $46.59. 14,482,586 shares traded hands during trading, a decline of 43% from the average session volume of 25,508,365 shares. The stock had previously closed at $45.57.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Craig Hallum boosted their target price on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Citigroup restated a "market outperform" rating on shares of Applied Digital in a research note on Tuesday, June 9th. Roth Mkm reiterated a "buy" rating and issued a $65.00 price objective on shares of Applied Digital in a research note on Thursday, April 23rd. Lucid Cap Mkts upgraded Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Finally, B. Riley Financial reissued a "buy" rating and issued a $66.00 target price (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price 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 has a market cap of $13.31 billion, a P/E ratio of -62.96 and a beta of 5.69. The business's 50-day simple moving average is $39.22 and its two-hundred day simple moving average is $33.24.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The business had revenue of $108.55 million during the quarter, compared to analysts' expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.Applied Digital's revenue for the quarter was up 139.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.08) EPS. Sell-side analysts expect that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Buying and Selling at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, the director owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of the firm's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares of the company's stock, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 35,000 shares of company stock worth $1,182,175. Company insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently modified their holdings of the company. AQR Capital Management LLC increased its holdings in Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after acquiring an additional 8,692 shares during the period. NewEdge Advisors LLC grew its position in shares of Applied Digital by 239.1% during the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock valued at $187,000 after purchasing an additional 23,457 shares in the last quarter. Geneos Wealth Management Inc. increased 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 period. Strs Ohio bought a new position in shares of Applied Digital in the first quarter worth $71,000. Finally, Cetera Investment Advisers raised its position in shares of Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock worth $621,000 after buying an additional 23,360 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

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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