Applied Digital (NASDAQ:APLD) Trading Up 2% - Here's What Happened

Key Points

• Applied Digital Corporation's stock price rose by 2%, reaching a high of $22.41, amid a trading volume that was 47% below its average.
• Several analysts have increased their price targets for APLD, with recommendations to buy the stock, including a new target of $23.00 from Craig Hallum.
• Insiders have recently sold a significant number of shares, with CFO Mohammad Saidal Lavanw Mohmand selling 75,000 shares worth approximately $1.14 million.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was up 2% during mid-day trading on Monday . The stock traded as high as $22.41 and last traded at $22.15. Approximately 19,198,929 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 36,442,238 shares. The stock had previously closed at $21.71.

Analysts Set New Price Targets

Several research analysts have recently issued reports on APLD shares. Craig Hallum upped their target price on shares of Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a report on Monday, August 18th. Roth Capital restated a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. HC Wainwright upped their price target on shares of Applied Digital from $15.00 to $20.00 and gave the company a "buy" rating in a research report on Monday, August 25th. Compass Point began coverage on shares of Applied Digital in a research report on Monday, September 15th. They set a "buy" rating on the stock. Finally, Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $15.64.

Applied Digital Trading Up 2.0%

The firm has a market cap of $5.97 billion, a PE ratio of -20.32 and a beta of 6.65. The company's fifty day moving average price is $15.77 and its two-hundred day moving average price is $10.50. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, meeting the consensus estimate of ($0.12). The business had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The business's quarterly revenue was up 41.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.14) earnings per share. As a group, sell-side analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of Applied Digital stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $1,144,500.00. Following the sale, the chief financial officer owned 201,800 shares of the company's stock, valued at $3,079,468. The trade was a 27.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 20,000 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $305,200.00. Following the transaction, the director directly owned 297,987 shares in the company, valued at approximately $4,547,281.62. This trade represents a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock valued at $7,713,675 over the last quarter. Corporate insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors and hedge funds have recently made changes to their positions in the stock. Teacher Retirement System of Texas acquired a new position in shares of Applied Digital during the 1st quarter worth $139,000. Exchange Traded Concepts LLC raised its holdings in Applied Digital by 4.0% during the first quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock worth $5,856,000 after purchasing an additional 39,945 shares during the last quarter. Register Financial Advisors LLC raised its holdings in Applied Digital by 26.2% during the first quarter. Register Financial Advisors LLC now owns 254,200 shares of the company's stock worth $1,429,000 after purchasing an additional 52,700 shares during the last quarter. Scientech Research LLC acquired a new stake in Applied Digital in the first quarter valued at $806,000. Finally, Lake Hills Wealth Management LLC acquired a new stake in Applied Digital in the second quarter valued at $184,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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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