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

Key Points

• Applied Digital Corporation shares increased by 2.3% on Tuesday, trading at a high of $38.10 and closing at $35.04, with a significant trading volume of approximately 48.5 million shares.
• Multiple analysts upgraded their ratings for Applied Digital, with price target hikes from firms including HC Wainwright to $40 and Lake Street Capital to $37, reflecting a generally positive sentiment towards the stock.
• The company reported quarterly revenue of $38.01 million, exceeding expectations and marking an 84.3% year-over-year increase, although earnings per share were still negative at ($0.03).

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were up 2.3% during trading on Tuesday . The company traded as high as $38.10 and last traded at $35.04. Approximately 48,524,639 shares changed hands during trading, an increase of 32% from the average daily volume of 36,686,148 shares. The stock had previously closed at $34.24.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on APLD shares. HC Wainwright lifted their price target on Applied Digital from $20.00 to $40.00 and gave the company a "buy" rating in a research note on Friday. Lake Street Capital boosted their target price on Applied Digital from $18.00 to $37.00 and gave the stock a "buy" rating in a report on Friday. Craig Hallum upped their price objective on Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a report on Monday, August 18th. Compass Point assumed coverage on Applied Digital in a research note on Monday, September 15th. They set a "buy" rating on the stock. Finally, Wall Street Zen raised Applied Digital from a "sell" rating to a "hold" rating in a research report on Saturday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $22.10.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The company has a 50-day simple moving average of $19.33 and a 200-day simple moving average of $12.08. The company has a market cap of $9.80 billion, a price-to-earnings ratio of -31.01 and a beta of 6.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The firm had revenue of $38.01 million during the quarter, compared to the consensus estimate of $52.25 million. During the same period last year, the business posted ($0.15) EPS. Applied Digital's quarterly revenue was up 84.3% on a year-over-year basis. As a group, research analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Activity at Applied Digital

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $1,144,500.00. Following the completion of the sale, the chief financial officer directly owned 201,800 shares in the company, 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 is accessible through the SEC website. Also, CEO Wes Cummins sold 400,000 shares of the stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $6,104,000.00. Following the completion of the sale, the chief executive officer owned 2,659,379 shares of the company's stock, valued at approximately $40,582,123.54. This represents a 13.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 506,250 shares of company stock valued at $7,713,675. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC lifted its holdings in Applied Digital by 1,237.4% in the first quarter. GAMMA Investing LLC now owns 9,576 shares of the company's stock worth $540,000 after acquiring an additional 8,860 shares during the last quarter. Rhumbline Advisers increased its stake in shares of 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 acquiring an additional 20,299 shares during the period. Wealth Enhancement Advisory Services LLC grew its position in Applied Digital by 29.4% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,778 shares of the company's stock worth $77,000 after buying an additional 3,127 shares during the last quarter. Exchange Traded Concepts LLC grew its position in Applied Digital by 4.0% in the first quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock worth $5,856,000 after buying an additional 39,945 shares during the last quarter. Finally, Mayfair Advisory Group LLC acquired a new position in Applied Digital in the first quarter worth approximately $68,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Company Profile

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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