Applied Digital (NASDAQ:APLD) Trading 2.3% Higher - Here's What Happened

Key Points

• Applied Digital Corporation shares rose 2.3% to $27.94 amidst lower trading volume, with 20.4 million shares traded, a significant drop from its average of 36.1 million.
• Multiple brokerages have raised their price targets for Applied Digital, with estimates ranging from $16.00 to $23.00, while maintaining a consensus rating of "Moderate Buy."
• In insider trading, CFO Mohammad Saidal Lavanw Mohmand and Director Richard N. Nottenburg sold portions of their shares, resulting in a notable decrease in their holdings in the company.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares traded up 2.3% during mid-day trading on Wednesday . The stock traded as high as $28.22 and last traded at $27.94. 20,460,131 shares were traded during trading, a decline of 43% from the average session volume of 36,113,871 shares. The stock had previously closed at $27.30.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on APLD. Needham & Company LLC boosted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Craig Hallum upped their target price on Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a report on Monday, August 18th. Compass Point assumed coverage on Applied Digital in a report on Monday, September 15th. They set a "buy" rating on the stock. Lake Street Capital upped their target price on Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, HC Wainwright upped their price target on Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a research note on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $15.64.

Applied Digital Trading Up 2.3%

The stock's fifty day moving average price is $17.82 and its 200 day moving average price is $11.36. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36. The stock has a market cap of $7.65 billion, a PE ratio of -25.63 and a beta of 6.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, meeting the consensus estimate of ($0.12). Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%.The business had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. During the same period last year, the business posted ($0.14) EPS. The company's revenue was up 41.3% compared to the same quarter last year. On average, sell-side analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of Applied Digital stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. This trade represents a 27.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $305,200.00. Following the transaction, the director owned 297,987 shares in the company, valued at $4,547,281.62. This represents a 6.29% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 506,250 shares of company stock valued at $7,713,675. 9.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in APLD. California State Teachers Retirement System lifted its position in shares of Applied Digital by 65.6% during the 4th quarter. California State Teachers Retirement System now owns 162,561 shares of the company's stock valued at $1,242,000 after buying an additional 64,425 shares in the last quarter. GAMMA Investing LLC lifted its holdings in Applied Digital by 1,237.4% during the first quarter. GAMMA Investing LLC now owns 9,576 shares of the company's stock valued at $540,000 after purchasing an additional 8,860 shares in the last quarter. Rhumbline Advisers lifted its holdings in Applied Digital by 7.8% during the first quarter. Rhumbline Advisers now owns 279,191 shares of the company's stock valued at $1,569,000 after purchasing an additional 20,299 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Applied Digital by 29.4% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,778 shares of the company's stock valued at $77,000 after buying an additional 3,127 shares in the last quarter. Finally, Exchange Traded Concepts LLC lifted its stake in shares of Applied Digital by 4.0% during the 1st quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock valued at $5,856,000 after buying an additional 39,945 shares in the last quarter. 65.67% of the stock is owned by hedge funds and other 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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