Applied Digital (NASDAQ:APLD) Trading 7.7% Higher - Should You Buy?

Key Points

• Applied Digital Corporation shares surged 7.7% to $13.48, with a trading volume significantly reduced by 57% compared to recent average sessions.
• Equity analysts have a consensus of "Buy" for Applied Digital, with twelve firms supporting this rating and a target price averaging $14.18, while JMP Securities raised its target price to $18.00.
• The company reported negative earnings per share of ($0.12) for the last quarter, meeting expectations, with revenue showing a 41.3% increase from the same period last year despite falling short of estimates.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares traded up 7.7% on Monday . The company traded as high as $13.52 and last traded at $13.48. 16,367,448 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 38,471,941 shares. The stock had previously closed at $12.52.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. JMP Securities upped their target price on Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a research report on Tuesday, June 3rd. Craig Hallum increased their price objective on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday, June 3rd. Roth Capital reiterated a "buy" rating on shares of Applied Digital in a research report on Monday, June 2nd. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a research report on Tuesday, June 3rd. Finally, Cantor Fitzgerald cut their price objective on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. Twelve investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Applied Digital presently has an average rating of "Buy" and a consensus price target of $14.18.

Applied Digital Price Performance

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 $3.56 billion, a price-to-earnings ratio of -12.50 and a beta of 6.17. The company's 50-day moving average is $10.49 and its 200-day moving average is $8.00.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.12). The firm had revenue of $38.01 million during the quarter, compared to analyst estimates of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The company's quarterly revenue was up 41.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.14) earnings per share. Equities research analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total transaction of $169,484.00. Following the completion of the sale, the director owned 83,613 shares of the company's stock, valued at approximately $585,291. This trade represents a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 11.81% of the company's stock.

Institutional Trading of Applied Digital

Several hedge funds have recently modified their holdings of APLD. Flagship Harbor Advisors LLC increased its holdings in shares of Applied Digital by 6.0% in the second quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock valued at $160,000 after purchasing an additional 900 shares in the last quarter. Corebridge Financial Inc. increased its holdings in shares of Applied Digital by 2.0% in the first quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock valued at $546,000 after purchasing an additional 1,899 shares in the last quarter. Wedbush Securities Inc. increased its holdings in shares of Applied Digital by 14.8% in the first quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock valued at $87,000 after purchasing an additional 2,000 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Applied Digital by 11.7% in the first quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock valued at $107,000 after purchasing an additional 2,001 shares in the last quarter. Finally, Teacher Retirement System of Texas increased its holdings in shares of Applied Digital by 10.2% in the second quarter. Teacher Retirement System of Texas now owns 27,252 shares of the company's stock valued at $274,000 after purchasing an additional 2,515 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.