Applied Digital (NASDAQ:APLD) Stock Price Up 8.8% - Here's What Happened

Key Points

• Applied Digital shares jumped 8.8% on Monday, closing at $46.47 after trading as high as $46.99. Volume was heavy at about 18.6 million shares, though still below its recent average.
• Recent analyst activity was broadly positive, with firms including Craig Hallum, Needham, and B. Riley raising price targets and/or reiterating buy ratings. The stock’s consensus rating remains Moderate Buy, with a consensus target price of $67.67.
• The company has seen strong revenue growth but remains unprofitable, reporting a quarterly EPS miss alongside 139.3% year-over-year revenue growth. Insiders have also been selling shares, while institutional investors continue to hold the majority of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares rose 8.8% during trading on Monday . The company traded as high as $46.99 and last traded at $46.47. Approximately 18,635,489 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 25,632,689 shares. The stock had previously closed at $42.70.

Analyst Upgrades and Downgrades

APLD has been the subject of a number of analyst reports. Craig Hallum lifted their price objective on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Zacks Research downgraded shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. B. Riley Financial reissued a "buy" rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Finally, Needham & Company LLC raised their target price on shares of Applied Digital from $66.00 to $83.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, Applied Digital currently has a consensus rating of "Moderate Buy" and a consensus target price of $67.67.

Applied Digital Trading Up 8.8%

The business's 50 day moving average price is $37.94 and its 200-day moving average price is $32.78. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The company has a market cap of $13.28 billion, a price-to-earnings ratio of -62.80 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business's quarterly revenue was up 139.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.08) EPS. On average, equities analysts anticipate that Applied Digital Corporation will post -0.68 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Newbridge Financial Services Group Inc. raised its stake in Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock worth $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC raised its stake in Applied Digital by 1.5% in the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock worth $523,000 after purchasing an additional 318 shares in the last quarter. Brookstone Capital Management raised its stake in Applied Digital by 3.6% in the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock worth $227,000 after purchasing an additional 321 shares in the last quarter. ProShare Advisors LLC raised its stake in Applied Digital by 1.0% in the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company's stock worth $841,000 after purchasing an additional 376 shares in the last quarter. Finally, Independent Advisor Alliance raised its stake in Applied Digital by 4.6% in the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock worth $226,000 after purchasing an additional 407 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

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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