Applied Digital (NASDAQ:APLD) Trading 7.8% Higher - Should You Buy?

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) traded up 7.8% on Friday . The company traded as high as $12.15 and last traded at $11.76. 28,848,516 shares changed hands during trading, a decline of 25% from the average session volume of 38,475,344 shares. The stock had previously closed at $10.91.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. B. Riley boosted their target price on Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. HC Wainwright boosted their target price on Applied Digital from $7.00 to $12.00 and gave the stock a "buy" rating in a research report on Tuesday, June 3rd. Roth Capital restated a "buy" rating on shares of Applied Digital in a research report on Monday, June 2nd. Needham & Company LLC restated a "buy" rating and set a $10.00 target price on shares of Applied Digital in a research report on Monday, June 2nd. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a research report on Tuesday, June 3rd. One research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $12.73.

Applied Digital Price Performance

The company has a market capitalization of $2.61 billion, a price-to-earnings ratio of -8.47 and a beta of 6.04. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.70 and a current ratio of 0.70. The business has a 50 day moving average price of $9.42 and a 200-day moving average price of $7.80.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Monday, April 14th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.05). The company had revenue of $52.92 million during the quarter, compared to analysts' expectations of $62.91 million. Applied Digital had a negative return on equity of 77.49% and a negative net margin of 109.99%. During the same period last year, the company earned ($0.24) earnings per share. Research analysts predict that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the transaction, the director directly owned 83,613 shares of the company's stock, valued at $585,291. This trade represents a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of large investors have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. grew its position in shares of Applied Digital by 100.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,798,431 shares of the company's stock worth $13,740,000 after buying an additional 899,138 shares during the last quarter. HighTower Advisors LLC boosted its holdings in Applied Digital by 34.7% in the fourth quarter. HighTower Advisors LLC now owns 16,162 shares of the company's stock valued at $123,000 after acquiring an additional 4,162 shares in the last quarter. Swiss National Bank increased its position in Applied Digital by 29.1% during the 4th quarter. Swiss National Bank now owns 338,800 shares of the company's stock valued at $2,588,000 after purchasing an additional 76,300 shares during the period. Commonwealth Equity Services LLC raised its holdings in Applied Digital by 55.1% in the 4th quarter. Commonwealth Equity Services LLC now owns 106,270 shares of the company's stock worth $812,000 after purchasing an additional 37,742 shares in the last quarter. Finally, Cibc World Markets Corp bought a new stake in shares of Applied Digital during the 4th quarter valued at about $137,000. Hedge funds and other institutional investors own 65.67% of the company's stock.

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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