Applied Digital (NASDAQ:APLD) Trading Up 2.6% - Here's What Happened

Key Points

• Applied Digital shares rose 2.6% to $24.91 in mid-day trading, with about 16.8 million shares changing hands—28% below average volume.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $68.15, though Zacks Research downgraded the stock to “Strong Sell” and Weiss Ratings maintained a “Sell” rating.
• The company reported strong revenue growth of 406.3% year over year to $240.35 million, but its quarterly loss of $0.39 per share significantly missed estimates of a $0.09 loss; an insider also sold 75,000 shares worth approximately $2.34 million.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were up 2.6% during trading on Wednesday . The stock traded as high as $25.00 and last traded at $24.91. Approximately 16,785,037 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 23,357,938 shares. The stock had previously closed at $24.29.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on APLD. B. Riley Financial restated a "buy" rating and issued a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Needham & Company LLC reiterated a "buy" rating and set a $83.00 target price on shares of Applied Digital in a research report on Tuesday, July 28th. Citigroup reissued a "market outperform" rating on shares of Applied Digital in a research note on Monday, August 3rd. Zacks Research cut shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 26th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a report on Tuesday, July 21st. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Applied Digital presently has a consensus rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Trading Up 2.6%

The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The business's fifty day moving average is $30.05 and its two-hundred day moving average is $33.16. The firm has a market cap of $7.26 billion, a price-to-earnings ratio of -27.99 and a beta of 5.72.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same quarter in the previous year, the company posted ($0.24) earnings per share. The business's revenue for the quarter was up 406.3% on a year-over-year basis. Equities analysts anticipate that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 75,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently made changes to their positions in APLD. FNY Investment Advisers LLC bought a new stake in shares of Applied Digital during the 2nd quarter worth approximately $37,000. Ameriflex Group Inc. bought a new position in shares of Applied Digital in the fourth quarter valued at $25,000. McMillan Office Inc. acquired a new position in Applied Digital during the fourth quarter worth $25,000. Mcguire Capital Advisors Inc. acquired a new position in Applied Digital during the fourth quarter worth $27,000. Finally, Larson Financial Group LLC raised its position in Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after acquiring an additional 1,129 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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