Applied Digital (NASDAQ:APLD) Stock Price Up 12.1% - Time to Buy?

Key Points

• Shares jumped 12.1% intraday (trading as high as $37.27) on heavy volume of ~55.1M shares, a 103% increase versus the average daily volume.
• Analysts have a consensus rating of "Moderate Buy" with an average target price of $43.56, though individual targets range from about $45 to $65 and ratings include a few sells amid mostly buy/strong-buy views.
• Applied Digital missed quarterly EPS (reported $(0.36) vs. $(0.13) expected) but beat revenue estimates ($108.6M vs. $78.5M), with revenue up ~139% YoY while the company remains unprofitable (negative net margin and projected -0.52 EPS for the year).

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares rose 12.1% during mid-day trading on Thursday . The company traded as high as $37.27 and last traded at $36.35. Approximately 55,097,384 shares were traded during mid-day trading, an increase of 103% from the average daily volume of 27,083,430 shares. The stock had previously closed at $32.43.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Zacks Research lowered shares of Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, April 8th. Lake Street Capital reissued a "buy" rating and set a $45.00 price objective on shares of Applied Digital in a report on Tuesday, December 30th. B. Riley Financial upped their price objective on Applied Digital to $53.00 and gave the company a "buy" rating in a research note on Friday, January 9th. Roth Mkm restated a "buy" rating and set a $65.00 price objective on shares of Applied Digital in a research note on Thursday. Finally, Northland Securities set a $56.00 price objective on Applied Digital in a research note on Wednesday, January 28th. Two investment 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 stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $43.56.

Applied Digital Trading Up 12.1%

The stock has a market cap of $10.39 billion, a price-to-earnings ratio of -49.12 and a beta of 7.25. The business's fifty day simple moving average is $28.27 and its 200 day simple moving average is $29.88. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). The business had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business's revenue for the quarter was up 139.3% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.08) EPS. On average, research analysts predict that Applied Digital Corporation will post -0.52 EPS for the current year.

Insiders Place Their Bets

In related news, 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 sale, the director owned 388,372 shares in the company, valued at $14,979,508.04. This represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Noble Wealth Management PBC bought a new position in Applied Digital during the 4th quarter worth $25,000. Albion Financial Group UT acquired a new position in shares of Applied Digital during the fourth quarter valued at $25,000. Activest Wealth Management acquired a new position in shares of Applied Digital during the fourth quarter valued at $25,000. Ameriflex Group Inc. bought a new stake in Applied Digital in the 4th quarter valued at about $25,000. Finally, McMillan Office Inc. bought a new stake in Applied Digital in the 4th quarter valued at about $25,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.