Stock Traders Purchase High Volume of Applied Digital Call Options (NASDAQ:APLD)

Key Points

• Traders bought an unusually large block of call options—119,713 calls, about an 11% increase over the average—signaling elevated bullish options interest in APLD.
• Shares jumped 10.3% to $35.77 on heavy volume (33.09M vs. average 26.75M) after quarterly results showing a $108.55M revenue beat but an EPS miss (‑$0.36 vs. est. ‑$0.13), with revenue up 139.3% year-over-year.
• Analyst and institutional sentiment is broadly positive: the consensus rating is a “Moderate Buy” with a $42.78 target price, and institutional ownership stands at about 65.7% after large position increases by firms like Vanguard.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) was the target of some unusual options trading activity on Thursday. Stock traders purchased 119,713 call options on the stock. This represents an increase of approximately 11% compared to the average volume of 107,715 call options.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on APLD. Arete Research began coverage on shares of Applied Digital in a report on Wednesday, January 7th. They set a "buy" rating on the stock. Wall Street Zen lowered shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. B. Riley Financial upped their price objective on shares of Applied Digital to $53.00 and gave the company a "buy" rating in a report on Friday, January 9th. Zacks Research lowered shares of Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, April 8th. Finally, Roth Mkm reiterated a "buy" rating on shares of Applied Digital in a report on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $42.78.

Applied Digital Stock Up 10.3%

Shares of NASDAQ:APLD traded up $3.34 during midday trading on Thursday, hitting $35.77. 33,092,495 shares of the company's stock were exchanged, compared to its average volume of 26,752,660. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The stock has a 50 day moving average price of $28.27 and a 200-day moving average price of $29.88. The company has a market cap of $10.22 billion, a PE ratio of -48.34 and a beta of 7.25. Applied Digital has a 12 month low of $4.07 and a 12 month high of $42.27.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The business had revenue of $108.55 million for the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company's revenue was up 139.3% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.08) earnings per share. On average, sell-side analysts anticipate that Applied Digital will post -0.52 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Chuck Hastings sold 45,987 shares of the business's stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $38.57, for a total value of $1,773,718.59. Following the transaction, the director owned 388,372 shares in the company, valued at $14,979,508.04. The trade was a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in APLD. Vanguard Group Inc. increased its position in shares of Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after acquiring an additional 6,445,908 shares in the last quarter. Value Aligned Research Advisors LLC bought a new stake in Applied Digital in the 4th quarter worth about $138,380,000. Situational Awareness LP grew its position in Applied Digital by 87.0% in the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock worth $278,034,000 after purchasing an additional 5,274,905 shares in the last quarter. BNP Paribas Financial Markets grew its position in 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 purchasing an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc grew its position in Applied Digital by 38,484.6% in the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company's stock worth $95,745,000 after purchasing an additional 3,894,639 shares in 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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