Applied Digital (NASDAQ:APLD) Trading Up 2% - Still a Buy?

Key Points

• Applied Digital shares rose 2% on Wednesday, trading as high as $29.31 on volume below its daily average before closing at $29.03. The stock remains volatile, with a beta of 5.67.
• Analyst sentiment is still mostly constructive: several firms recently raised targets, including Lake Street Capital to $90, and the stock carries a consensus “Moderate Buy” rating with an average price target of $70.56.
• There has been notable insider selling and mixed institutional activity, with directors selling shares in recent months while institutions such as AQR Capital and Cetera increased their stakes. Institutional investors now own 65.67% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price shot up 2% on Wednesday . The stock traded as high as $29.31 and last traded at $29.03. 19,905,672 shares changed hands during trading, a decline of 19% from the average daily volume of 24,658,660 shares. The stock had previously closed at $28.47.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Lake Street Capital boosted their target price on Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Zacks Research downgraded Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. Citigroup reissued a "market outperform" rating on shares of Applied Digital in a research note on Tuesday, June 9th. Northland Securities set a $82.00 target price on Applied Digital and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Finally, Craig Hallum upped their price target on shares of Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, Applied Digital presently has a consensus rating of "Moderate Buy" and a consensus price target of $70.56.

Applied Digital Stock Up 2.0%

The firm's 50-day moving average is $41.27 and its two-hundred day moving average is $34.42. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The stock has a market cap of $8.30 billion, a P/E ratio of -39.23 and a beta of 5.67.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the business's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of the company's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. This trade represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 35,000 shares of company stock valued at $1,182,175 over the last three months. Insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC boosted its stake in shares of Applied Digital by 84.8% in the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock valued at $106,000 after purchasing an additional 8,692 shares during the last quarter. NewEdge Advisors LLC raised its stake in shares of Applied Digital by 239.1% during the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after buying an additional 23,457 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after buying an additional 3,542 shares during the period. Strs Ohio acquired a new position in Applied Digital in the first quarter valued at approximately $71,000. Finally, Cetera Investment Advisers boosted its stake in Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after acquiring an additional 23,360 shares during the last quarter. 65.67% of the stock is owned by 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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