Applied Digital (NASDAQ:APLD) Shares Up 3.6% - What's Next?

Key Points

• Applied Digital Corporation's stock rose by 3.6% to close at $22.94, with a trading volume lower than the average.
• Several Wall Street analysts, including from JMP Securities and B. Riley, have raised their price targets, indicating a positive outlook with an average target price of $15.64.
• Insider trading activity showed that top executives, including CFO Mohammad Saidal Lavanw Mohmand, sold shares valued at over $1.4 million, reducing their positions significantly.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price shot up 3.6% during trading on Tuesday . The company traded as high as $23.55 and last traded at $22.94. 27,432,463 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 36,393,703 shares. The stock had previously closed at $22.15.

Wall Street Analysts Forecast Growth

APLD has been the topic of a number of research reports. JMP Securities raised their price target on Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a report on Tuesday, June 3rd. Roth Capital reissued a "buy" rating on shares of Applied Digital in a report on Tuesday. B. Riley increased their target price on shares of Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a report on Wednesday, June 4th. Lake Street Capital boosted their price target on Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company's stock. According to MarketBeat, Applied Digital currently has an average rating of "Buy" and an average target price of $15.64.

Applied Digital Stock Up 3.6%

The firm's 50 day moving average is $15.99 and its 200-day moving average is $10.60. The firm has a market cap of $6.18 billion, a PE ratio of -21.05 and a beta of 6.65. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36.

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

Insider Buying and Selling at Applied Digital

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the completion of the transaction, the chief financial officer owned 201,800 shares of the company's stock, valued at $3,079,468. This represents a 27.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard N. Nottenburg sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $305,200.00. Following the completion of the sale, the director directly owned 297,987 shares in the company, valued at $4,547,281.62. This represents a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 506,250 shares of company stock worth $7,713,675 in the last 90 days. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Institutional investors and hedge funds have recently made changes to their positions in the company. Atlantic Union Bankshares Corp acquired a new position in Applied Digital in the second quarter valued at $25,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Applied Digital in the 2nd quarter valued at about $26,000. PNC Financial Services Group Inc. purchased a new stake in shares of Applied Digital during the 1st quarter worth about $28,000. Geneos Wealth Management Inc. increased its position in Applied Digital by 113.3% during the 1st 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 in the last quarter. Finally, Ameriflex Group Inc. purchased a new position in Applied Digital in the second quarter valued at approximately $42,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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