Applied Digital (NASDAQ:APLD) Stock Price Up 14.6% - What's Next?

Key Points

• Shares jumped 14.6% to about $28.11 on Friday with volume ~35.7M (≈50% above average), pushing the stock above the MarketBeat consensus target of $27 and underscoring high volatility (beta 6.89).
• Quarterly results beat estimates: Q3 revenue rose 84.3% YoY to $64.22M and EPS was -$0.03 versus a -$0.11 consensus, but the company remains unprofitable with a negative net margin and negative return on equity.
• Significant insider selling: insiders (including a director and the CFO) sold 328,035 shares worth about $11.4M over the past three months, though insiders still own 9.5% of the company.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares shot up 14.6% on Friday . The company traded as high as $28.44 and last traded at $28.11. 35,664,639 shares changed hands during mid-day trading, an increase of 50% from the average session volume of 23,706,060 shares. The stock had previously closed at $24.52.

Analyst Upgrades and Downgrades

A number of research firms recently commented on APLD. B. Riley reiterated a "buy" rating on shares of Applied Digital in a research report on Wednesday, October 22nd. Northland Securities restated an "outperform" rating and issued a $40.00 price objective on shares of Applied Digital in a report on Tuesday. Needham & Company LLC reaffirmed a "buy" rating and set a $41.00 price target on shares of Applied Digital in a research report on Wednesday, October 29th. Compass Point started coverage on shares of Applied Digital in a research report on Monday, September 15th. They set a "buy" rating on the stock. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $27.00.

Applied Digital Stock Up 14.6%

The firm has a market cap of $7.85 billion, a PE ratio of -24.88 and a beta of 6.89. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. The business has a fifty day moving average price of $27.68 and a two-hundred day moving average price of $20.89.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.11) by $0.08. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The firm had revenue of $64.22 million during the quarter, compared to analysts' expectations of $52.25 million. During the same quarter last year, the firm earned ($0.15) earnings per share. The business's revenue for the quarter was up 84.3% on a year-over-year basis. On average, analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Ella G. Benson sold 42,569 shares of the stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the completion of the sale, the director directly owned 69,256 shares of the company's stock, valued at $2,444,736.80. This represents a 38.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the business's stock in a transaction dated Tuesday, October 28th. The stock was sold at an average price of $36.47, for a total transaction of $1,367,734.41. Following the transaction, the chief financial officer owned 121,409 shares in the company, valued at approximately $4,427,786.23. The trade was a 23.60% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 328,035 shares of company stock worth $11,376,479. Insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Larson Financial Group LLC grew its holdings in shares of Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after purchasing an additional 1,129 shares in the last quarter. Dagco Inc. bought a new stake in Applied Digital in the 3rd quarter valued at $27,000. Evolution Wealth Management Inc. boosted its position in shares of Applied Digital by 101.8% during the 3rd quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company's stock valued at $37,000 after acquiring an additional 807 shares in the last quarter. Allworth Financial LP increased its stake in Applied Digital by 70.0% in the third quarter. Allworth Financial LP now owns 1,746 shares of the company's stock valued at $40,000 after acquiring an additional 719 shares during the period. Finally, CoreCap Advisors LLC raised its position in Applied Digital by 124.9% in the third quarter. CoreCap Advisors LLC now owns 1,804 shares of the company's stock worth $41,000 after purchasing an additional 1,002 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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