Applied Digital (NASDAQ:APLD) Stock Price Up 6.2% - Still a Buy?

Key Points

• Shares jumped 6.2% to $36.91 on Friday on below-average volume (16.95M vs. a 40.91M average); Wall Street's consensus rating is "Buy" but the MarketBeat consensus price target of $33.27 sits below the current share price.
• Applied Digital reported revenue of $126.59M (a 250% YoY increase) that beat estimates, but missed on EPS at ($0.11) vs. ($0.09) expected and remains unprofitable (negative PE and a -43.49% net margin).
• Corporate insiders have been net sellers — 368,053 shares sold (~$13.25M) in the past 90 days — while institutional investors hold roughly 65.7% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded up 6.2% during trading on Friday . The stock traded as high as $37.21 and last traded at $36.91. 16,954,719 shares were traded during mid-day trading, a decline of 59% from the average session volume of 40,909,945 shares. The stock had previously closed at $34.74.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on APLD shares. Wall Street Zen raised Applied Digital from a "sell" rating to a "hold" rating in a report on Saturday, January 10th. Arete Research started coverage on shares of Applied Digital in a report on Wednesday, January 7th. They set a "buy" rating on the stock. Freedom Capital upgraded shares of Applied Digital to a "strong-buy" rating in a report on Tuesday, January 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research report on Wednesday, October 8th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $41.00 target price on shares of Applied Digital in a research report on Thursday, January 8th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $33.27.

Applied Digital Price Performance

The company has a market capitalization of $10.82 billion, a PE ratio of -71.67 and a beta of 6.89. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The firm's 50-day moving average is $28.48 and its 200-day moving average is $23.37.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Wednesday, January 7th. The company reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.02). Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The business had revenue of $126.59 million during the quarter, compared to analysts' expectations of $82.22 million. During the same quarter in the previous year, the business earned ($0.06) EPS. Applied Digital's revenue for the quarter was up 250.1% compared to the same quarter last year. Equities analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the company's stock in a transaction dated Tuesday, October 28th. The shares were sold at an average price of $36.47, for a total value of $1,367,734.41. Following the transaction, the chief financial officer owned 121,409 shares in the company, valued at $4,427,786.23. The trade was a 23.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Ella G. Benson sold 42,569 shares of the company's stock in a transaction dated Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the transaction, the director owned 69,256 shares in the company, valued at $2,444,736.80. This represents a 38.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 368,053 shares of company stock valued at $13,251,886 in the last ninety days. Corporate insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Hedge funds have recently added to or reduced their stakes in the business. Newbridge Financial Services Group Inc. lifted its holdings in shares of Applied Digital by 8.6% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock valued at $93,000 after purchasing an additional 300 shares during the last quarter. Brookstone Capital Management boosted its stake in shares of Applied Digital by 3.6% during the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock worth $227,000 after acquiring an additional 321 shares in the last quarter. ProShare Advisors LLC raised its stake in shares of Applied Digital by 1.0% during the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company's stock worth $841,000 after buying an additional 376 shares during the period. PNC Financial Services Group Inc. grew its position in shares of Applied Digital by 7.4% in the third quarter. PNC Financial Services Group Inc. now owns 5,951 shares of the company's stock valued at $137,000 after purchasing an additional 408 shares during the period. Finally, Wedbush Securities Inc. increased its stake in Applied Digital by 5.7% during the 3rd quarter. Wedbush Securities Inc. now owns 10,785 shares of the company's stock worth $247,000 after buying an additional 585 shares in the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

About Applied Digital

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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