Applied Digital (NASDAQ:APLD) Shares Up 7.5% - Time to Buy?

Key Points

• Shares rose 7.5% on Monday to $27.03 with about 18.47 million shares traded, roughly 40% below the stock's average daily volume.
• Analysts are largely bullish — MarketBeat shows a consensus "Buy" rating with an average price target of $37 and several firms issuing Buy/Strong‑Buy calls (top target $53).
• Notable insider selling occurred recently (CEO and a director sold shares; ~244,593 shares sold in the last 90 days), while the company shows a negative P/E (-50.06), high volatility (beta 7.20) and leverage (debt/equity 1.79), indicating elevated risk despite analyst optimism.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) rose 7.5% on Monday . The company traded as high as $27.17 and last traded at $27.03. Approximately 18,473,134 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 31,006,877 shares. The stock had previously closed at $25.14.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Lake Street Capital reaffirmed a "buy" rating and issued a $45.00 price objective on shares of Applied Digital in a report on Tuesday, December 30th. Texas Capital upgraded shares of Applied Digital to a "strong-buy" rating in a research note on Tuesday, January 20th. Needham & Company LLC reissued a "buy" rating and set a $41.00 target price on shares of Applied Digital in a report on Thursday, January 8th. Finally, B. Riley Financial boosted their target price on shares of Applied Digital to $53.00 and gave the company a "buy" rating in a research report on Friday, January 9th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Applied Digital has a consensus rating of "Buy" and an average price target of $37.00.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The stock has a market capitalization of $7.56 billion, a price-to-earnings ratio of -50.06 and a beta of 7.20. The stock has a 50 day moving average price of $32.64 and a 200-day moving average price of $28.05.

Insider Buying and Selling at Applied Digital

In related news, CEO Wes Cummins sold 165,000 shares of the company's stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the completion of the sale, the chief executive officer owned 4,176,329 shares of the company's stock, valued at approximately $152,101,902.18. This represents a 3.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Chuck Hastings sold 45,987 shares of the stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the completion of the sale, the director owned 388,372 shares of the company's stock, valued at approximately $14,979,508.04. The trade was a 10.59% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 244,593 shares of company stock worth $9,003,278. Company insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently bought and sold shares of APLD. Teachers Retirement System of The State of Kentucky acquired a new position in shares of Applied Digital in the third quarter worth $994,000. Voya Investment Management LLC raised its stake in shares of Applied Digital by 403.4% in the third quarter. Voya Investment Management LLC now owns 1,464,909 shares of the company's stock valued at $33,605,000 after acquiring an additional 1,173,929 shares in the last quarter. Federated Hermes Inc. purchased a new position in Applied Digital in the third quarter valued at $3,204,000. AlphaQuest LLC acquired a new position in Applied Digital during the 3rd quarter worth $1,369,000. Finally, MRA Advisory Group acquired a new position in Applied Digital during the 3rd quarter worth $978,000. 65.67% of the stock is currently owned by hedge funds and other 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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