Applied Digital (NASDAQ:APLD) Trading 36% Higher After Analyst Upgrade

Key Points

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Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was up 36% during mid-day trading on Thursday after Lake Street Capital raised their price target on the stock from $14.00 to $18.00. Lake Street Capital currently has a buy rating on the stock. Applied Digital traded as high as $14.06 and last traded at $13.64. Approximately 76,692,240 shares changed hands during trading, an increase of 101% from the average daily volume of 38,124,602 shares. The stock had previously closed at $10.03.

Several other analysts have also issued reports on APLD. HC Wainwright boosted their target price on shares of Applied Digital from $12.00 to $15.00 and gave the company a "buy" rating in a research report on Thursday. Cantor Fitzgerald cut their price objective on shares of Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. Craig Hallum upped their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research note on Tuesday, June 3rd. Needham & Company LLC lifted their target price on Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Citizens Jmp raised Applied Digital to a "strong-buy" rating and set a $12.00 price target for the company in a report on Thursday, May 22nd. Twelve investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Applied Digital has an average rating of "Buy" and a consensus price target of $14.18.

Insider Activity at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of the stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total transaction of $169,484.00. Following the completion of the sale, the director owned 83,613 shares in the company, valued at approximately $585,291. This trade represents a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 11.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. HighTower Advisors LLC lifted its holdings in shares of Applied Digital by 34.7% in the fourth quarter. HighTower Advisors LLC now owns 16,162 shares of the company's stock worth $123,000 after buying an additional 4,162 shares in the last quarter. Commonwealth Equity Services LLC increased its holdings in shares of Applied Digital by 55.1% in the 4th quarter. Commonwealth Equity Services LLC now owns 106,270 shares of the company's stock worth $812,000 after buying an additional 37,742 shares during the last quarter. Sei Investments Co. raised its position in shares of Applied Digital by 20.2% during the 4th quarter. Sei Investments Co. now owns 524,718 shares of the company's stock valued at $4,009,000 after buying an additional 88,090 shares in the last quarter. KLP Kapitalforvaltning AS purchased a new stake in Applied Digital during the fourth quarter valued at approximately $248,000. Finally, LPL Financial LLC lifted its position in Applied Digital by 58.4% in the fourth quarter. LPL Financial LLC now owns 180,902 shares of the company's stock worth $1,382,000 after buying an additional 66,683 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Stock Down 9.3%

The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market cap of $2.68 billion, a P/E ratio of -10.94 and a beta of 6.04. The company's fifty day moving average price is $10.39 and its 200-day moving average price is $7.98.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.12). Applied Digital had a negative return on equity of 54.03% and a negative net margin of 107.22%. The business had revenue of $38.01 million during the quarter, compared to analyst estimates of $42.86 million. During the same quarter in the previous year, the business earned ($0.14) earnings per share. The company's revenue for the quarter was up 41.3% compared to the same quarter last year. Equities analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

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.