Applied Digital (NASDAQ:APLD) Trading 4.1% Higher - Here's Why

Key Points

• Applied Digital shares rose 4.1% to $28.52 on Wednesday with about 17.8M shares traded (down 42% vs. average); the company has a roughly $7.97B market cap and a negative trailing PE of -52.81.
• Analysts are broadly positive: the consensus rating is a "Buy" with an average target of $37.00, and several firms (Lake Street, Needham, Freedom Capital, Texas Capital) have recently issued upgrades or buy/reiterate ratings.
• Insiders have been net sellers—244,593 shares (~$9.0M) sold in the past 90 days and insiders own 9.5%—while institutional ownership is high at 65.67%, including a new ~$29.5M stake by HSBC.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were up 4.1% during trading on Wednesday . The company traded as high as $29.43 and last traded at $28.52. Approximately 17,766,247 shares were traded during trading, a decline of 42% from the average daily volume of 30,404,367 shares. The stock had previously closed at $27.40.

Analyst Upgrades and Downgrades

APLD has been the subject of several analyst reports. Lake Street Capital reissued a "buy" rating and issued a $45.00 price target on shares of Applied Digital in a research note on Tuesday, December 30th. Freedom Capital upgraded Applied Digital to a "strong-buy" rating in a report on Tuesday, January 6th. Wall Street Zen upgraded Applied Digital from a "sell" rating to a "hold" rating in a research report on Saturday, January 10th. Needham & Company LLC reissued a "buy" rating and set a $41.00 target price on shares of Applied Digital in a research note on Thursday, January 8th. Finally, Texas Capital upgraded Applied Digital to a "strong-buy" rating in a research report on Tuesday, January 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital presently has an average rating of "Buy" and an average target price of $37.00.

Applied Digital Price Performance

The company's 50-day simple moving average is $32.75 and its 200 day simple moving average is $28.21. The company has a market cap of $7.97 billion, a PE ratio of -52.81 and a beta of 7.20. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,000 shares of the stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $35.45, for a total transaction of $425,400.00. Following the completion of the sale, the director owned 233,378 shares in the company, valued at approximately $8,273,250.10. This represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $38.54, for a total value of $385,400.00. Following the completion of the transaction, the director owned 200,859 shares in the company, valued at $7,741,105.86. This trade represents a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 over the last ninety days. 9.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Large investors have recently modified their holdings of the stock. Hsbc Holdings PLC acquired a new stake in shares of Applied Digital during the fourth quarter worth $29,510,000. NWF Advisory Services Inc. increased its stake in Applied Digital by 38.1% in the 4th quarter. NWF Advisory Services Inc. now owns 17,160 shares of the company's stock valued at $421,000 after buying an additional 4,730 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Applied Digital during the 4th quarter worth $4,328,000. White Knight Strategic Wealth Advisors LLC lifted its stake in shares of Applied Digital by 7.6% in the 4th quarter. White Knight Strategic Wealth Advisors LLC now owns 29,846 shares of the company's stock worth $732,000 after acquiring an additional 2,120 shares during the period. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Applied Digital in the 4th quarter worth $27,000. 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.

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