Applied Digital (NASDAQ:APLD) Trading 2.1% Higher - Here's Why

Key Points

• Shares rose 2.1% midday to about $32.19 (intraday high $32.55) on volume down ~18% versus average; Wall Street consensus is a “Moderate Buy” with an average price target of $42.78 (2 Strong Buy, 11 Buy, 2 Sell).
• Applied Digital missed EPS in the latest quarter (‑$0.36 vs. est. ‑$0.13) but reported revenue of $108.6M (vs. $78.5M est.), up 139.3% YoY; the company remains unprofitable with a negative net margin (52.84%) and negative ROE.
• Director Chuck Hastings sold 45,987 shares in January (about a 10.6% reduction of his stake); insiders own 9.5% of the stock while institutional investors hold 65.67%.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) traded up 2.1% during mid-day trading on Monday . The stock traded as high as $32.55 and last traded at $32.19. 22,053,230 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 26,846,086 shares. The stock had previously closed at $31.53.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on APLD. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Roth Mkm restated a "buy" rating on shares of Applied Digital in a report on Tuesday, February 17th. Arete Research initiated coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a "buy" rating for the company. Texas Capital upgraded shares of Applied Digital to a "strong-buy" rating in a report on Tuesday, January 20th. Finally, Lake Street Capital restated a "buy" rating and issued a $45.00 target price on shares of Applied Digital in a report on Tuesday, December 30th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $42.78.

Applied Digital Stock Up 2.1%

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 capitalization of $9.20 billion, a price-to-earnings ratio of -43.50 and a beta of 7.25. The firm's fifty day simple moving average is $28.60 and its two-hundred day simple moving average is $29.79.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing analysts' consensus estimates 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 quarter in the prior year, the firm earned ($0.08) EPS. Applied Digital's revenue for the quarter was up 139.3% compared to the same quarter last year. Sell-side analysts anticipate that Applied Digital Corporation will post -0.52 EPS for the current year.

Insider Activity

In other news, Director Chuck Hastings sold 45,987 shares of the stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the sale, the director owned 388,372 shares of the company's stock, valued at approximately $14,979,508.04. This represents a 10.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Large investors have recently modified their holdings of the stock. Noble Wealth Management PBC purchased a new stake in shares of Applied Digital during the fourth quarter worth $25,000. Albion Financial Group UT acquired a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Activest Wealth Management acquired a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Finally, McMillan Office Inc. acquired a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Hedge funds and other institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.