Applied Digital (NASDAQ:APLD) Trading Up 17.2% - Here's Why

Key Points

• Applied Digital's stock price surged 17.2% during trading on Monday, reaching a high of $16.63, following a prior closing price of $14.09.
• Investment analysts remain bullish on the company, with twelve analysts giving a "buy" rating and target prices ranging from $15.00 to $23.00, indicating strong confidence in its growth potential.
• Despite reporting a negative net margin of 107.22%, Applied Digital's revenue showed a year-over-year increase of 41.3%, demonstrating significant growth in its financial performance.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price was up 17.2% during trading on Monday . The stock traded as high as $16.63 and last traded at $16.52. Approximately 33,593,336 shares changed hands during trading, a decline of 11% from the average daily volume of 37,824,684 shares. The stock had previously closed at $14.09.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on APLD shares. B. Riley boosted their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. JMP Securities upped their target price on shares of Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a research note on Tuesday, June 3rd. Roth Capital reiterated a "buy" rating on shares of Applied Digital in a research note on Monday, June 2nd. Craig Hallum reiterated a "buy" rating and issued a $23.00 target price (up previously from $12.00) on shares of Applied Digital in a research note on Monday. Finally, Lake Street Capital upped their target price on shares of Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Twelve investment analysts have rated the stock with a buy rating and one has assigned a strong buy 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 $15.18.

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 firm's fifty day moving average price is $11.45 and its two-hundred day moving average price is $8.44. The stock has a market capitalization of $4.25 billion, a PE ratio of -14.93 and a beta of 6.17.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, meeting analysts' consensus estimates of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The business had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. During the same period in the prior year, the company earned ($0.14) earnings per share. The firm's revenue was up 41.3% on a year-over-year basis. On average, equities analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of the stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the sale, the director directly owned 83,613 shares of the company's stock, valued at $585,291. This represents a 22.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 11,250 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $14.22, for a total transaction of $159,975.00. Following the completion of the sale, the director directly owned 317,987 shares of the company's stock, valued at approximately $4,521,775.14. This trade represents a 3.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 11.81% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Hood River Capital Management LLC lifted its position in Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after purchasing an additional 592,314 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Applied Digital by 5.7% in the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock worth $75,819,000 after acquiring an additional 730,978 shares during the last quarter. Situational Awareness LP lifted its holdings in shares of Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after acquiring an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after acquiring an additional 5,198,223 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Applied Digital by 24.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock worth $26,799,000 after acquiring an additional 514,896 shares during the last quarter. 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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