Applied Digital (NASDAQ:APLD) Trading 8% Higher - Time to Buy?

Key Points

• Applied Digital shares rose 8% on Monday, trading as high as $28.39 after closing at $25.79, with volume slightly below its average daily level.
• Wall Street sentiment is mostly bullish: multiple firms raised price targets or ratings, and the stock now has a consensus target price of $70.56 with a “Moderate Buy” average rating.
• Despite the rally, the company has seen recent insider selling, while hedge funds and other institutional investors continue to hold a large majority of the stock at 65.67% ownership.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) traded up 8% on Monday . The company traded as high as $28.39 and last traded at $27.85. 22,907,238 shares changed hands during mid-day trading, a decline of 7% from the average daily volume of 24,592,973 shares. The stock had previously closed at $25.79.

Wall Street Analyst Weigh In

APLD has been the subject of several research reports. Lake Street Capital lifted their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Lucid Cap Mkts upgraded shares of Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Wall Street Zen cut shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Zacks Research downgraded shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. Finally, Needham & Company LLC upped their price target on shares of Applied Digital from $66.00 to $83.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $70.56.

Applied Digital Price Performance

The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market capitalization of $7.96 billion, a price-to-earnings ratio of -37.63 and a beta of 5.67. The stock has a 50-day moving average price of $40.36 and a 200 day moving average price of $34.47.

Insider Buying and Selling

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares in the company, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 35,000 shares of company stock worth $1,182,175 in the last quarter. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in APLD. Handelsbanken Fonder AB raised its position in shares of Applied Digital by 1.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company's stock worth $2,671,000 after purchasing an additional 700 shares during the last quarter. Whitaker Myers Wealth Managers LTD. purchased a new stake in Applied Digital during the 2nd quarter worth approximately $1,841,000. Hennion & Walsh Asset Management Inc. increased its stake in Applied Digital by 102.3% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 41,787 shares of the company's stock worth $1,559,000 after buying an additional 21,130 shares in the last quarter. TrueWealth Advisors LLC acquired a new position in shares of Applied Digital during the second quarter valued at approximately $381,000. Finally, FNY Investment Advisers LLC acquired a new position in shares of Applied Digital during the second quarter valued at approximately $37,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

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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