Applied Digital (NASDAQ:APLD) Stock Price Up 5.9% - Here's What Happened

Key Points

• Applied Digital (NASDAQ: APLD) stock rose by 5.9% on Thursday, reaching a high of $28.25 before closing at $26.47, despite a 4% decrease in trading volume from its average.
• Brokerages have recently upgraded their target prices for Applied Digital, with B. Riley setting a new target of $15.00 and HC Wainwright raising it to $20.00, signifying strong analyst confidence in the stock.
• The company reported a quarterly revenue increase of 41.3% year-over-year but had a negative net margin of 107.22%, reflecting ongoing financial challenges.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shot up 5.9% on Thursday . The company traded as high as $28.25 and last traded at $26.47. 34,850,664 shares were traded during mid-day trading, a decline of 4% from the average session volume of 36,319,707 shares. The stock had previously closed at $25.00.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on APLD. B. Riley upped their target price on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. HC Wainwright upped their target price on shares of Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a research note on Monday, August 25th. Needham & Company LLC upped their target price on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Compass Point began coverage on shares of Applied Digital in a research note on Monday, September 15th. They issued a "buy" rating for the company. Finally, Craig Hallum upped their target price on shares of Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a research note on Monday, August 18th. One research analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $15.64.

Applied Digital Stock Performance

The stock's 50 day moving average price is $16.51 and its 200 day moving average price is $10.79. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of -24.28 and a beta of 6.78.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, hitting analysts' consensus estimates of ($0.12). The company had revenue of $38.01 million during the quarter, compared to the consensus estimate of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The company's quarterly revenue was up 41.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.14) EPS. Analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Activity

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $1,144,500.00. Following the sale, the chief financial officer directly owned 201,800 shares of the company's stock, valued at approximately $3,079,468. This represents a 27.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard N. Nottenburg sold 20,000 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $305,200.00. Following the completion of the sale, the director directly owned 297,987 shares in the company, valued at approximately $4,547,281.62. The trade was a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 506,250 shares of company stock valued at $7,713,675. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Hood River Capital Management LLC raised its holdings in Applied Digital by 2.8% in the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after acquiring an additional 592,314 shares during the period. Vanguard Group Inc. raised its holdings in Applied Digital by 5.7% in the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock valued at $75,819,000 after acquiring an additional 730,978 shares during the period. Situational Awareness LP raised its holdings in Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock valued at $66,379,000 after acquiring an additional 2,556,200 shares during the period. BNP Paribas Financial Markets raised its holdings in Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after acquiring an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Applied Digital by 24.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock valued at $26,799,000 after acquiring an additional 514,896 shares during the period. 65.67% of the stock is owned by institutional investors.

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.

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