Applied Digital (NASDAQ:APLD) Stock Price Up 5.1% - Here's What Happened

Key Points

• Applied Digital shares jumped about 5.1% intraday to roughly $27.60 on Monday, with ~21.2 million shares traded (about 22% below average).
• Analyst sentiment is broadly positive—two Strong Buy, twelve Buy and two Sell ratings yield a consensus rating of Moderate Buy and a consensus price target of $39.20.
• The company missed EPS (reported -$0.36 vs. -$0.13 expected) but posted revenue of $108.6M, beating estimates and rising about 139.3% year-over-year.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares shot up 5.1% during mid-day trading on Monday . The company traded as high as $27.87 and last traded at $27.60. 21,237,973 shares traded hands during trading, a decline of 22% from the average session volume of 27,059,965 shares. The stock had previously closed at $26.26.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Citizens Jmp reissued a "market outperform" rating and set a $40.00 price objective on shares of Applied Digital in a report on Thursday. 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. Citigroup reissued an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Texas Capital raised Applied Digital to a "strong-buy" rating in a report on Tuesday, January 20th. Finally, Needham & Company LLC reissued a "buy" rating and set a $41.00 price objective on shares of Applied Digital in a report on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, Applied Digital currently has an average rating of "Moderate Buy" and a consensus price target of $39.20.

Applied Digital Trading Up 5.1%

The firm has a fifty day simple moving average of $28.88 and a two-hundred day simple moving average of $29.53. The stock has a market cap of $7.89 billion, a PE ratio of -37.30 and a beta of 7.25. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results 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). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business had revenue of $108.55 million during the quarter, compared to analysts' expectations of $78.47 million. During the same period in the previous year, the business earned ($0.08) EPS. The business's revenue was up 139.3% on a year-over-year basis. As a group, equities analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Chuck Hastings sold 45,987 shares of the firm's stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the transaction, the director directly owned 388,372 shares of the company's stock, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard N. Nottenburg sold 12,000 shares of the business's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the sale, the director owned 233,378 shares of the company's stock, valued at $8,273,250.10. The trade was a 4.89% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 234,593 shares of company stock worth $8,617,878. 9.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

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