Applied Digital (NASDAQ:APLD) Stock Price Up 1.4% - Here's Why

Key Points

• Applied Digital shares rose 1.4% in Thursday trading, reaching as high as $50.73 as investors responded to the latest company and analyst updates.
• Analyst sentiment remains generally positive, with several firms reiterating buy or outperform ratings; the consensus rating is Moderate Buy with an average price target of $59.11.
• The company reported mixed quarterly results, missing EPS estimates but beating revenue expectations with $108.55 million in sales, while revenue still surged 139.3% year over year.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares rose 1.4% during mid-day trading on Thursday . The company traded as high as $50.73 and last traded at $49.65. Approximately 19,081,606 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 26,203,320 shares. The stock had previously closed at $48.98.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a research report on Thursday, May 21st. Wall Street Zen downgraded Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Compass Point reiterated a "buy" rating and set a $70.00 target price on shares of Applied Digital in a research report on Friday, May 22nd. Roth Mkm reiterated a "buy" rating and set a $65.00 target price on shares of Applied Digital in a research report on Thursday, April 23rd. Finally, Lake Street Capital reiterated a "buy" rating and set a $70.00 target price (up from $55.00) on shares of Applied Digital in a research report on Thursday, May 21st. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $59.11.

Applied Digital Stock Performance

The firm has a market capitalization of $14.19 billion, a P/E ratio of -67.09 and a beta of 5.69. The firm has a 50-day moving average price of $33.54 and a two-hundred day moving average price of $31.18. 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) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The firm had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business's revenue was up 139.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.08) earnings per share. On average, analysts forecast that Applied Digital Corporation will post -0.61 EPS for the current fiscal year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital 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 sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director 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 SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last 90 days. 9.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after acquiring an additional 6,445,908 shares in the last quarter. Situational Awareness LP raised its holdings in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock worth $319,978,000 after purchasing an additional 2,139,378 shares in the last quarter. Geode Capital Management LLC raised its holdings in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock worth $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Value Aligned Research Advisors LLC bought a new position in Applied Digital in the fourth quarter worth about $138,380,000. Finally, BNP Paribas Financial Markets raised its holdings in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. 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.

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