Applied Digital (NASDAQ:APLD) Shares Gap Up – Should You Buy?

Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday . The stock had previously closed at $7.75, but opened at $7.93. Applied Digital shares last traded at $8.77, with a volume of 3,500,361 shares.

Wall Street Analyst Weigh In

APLD has been the subject of several research analyst reports. HC Wainwright lifted their price target on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Lake Street Capital upped their price target on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Craig Hallum raised their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a report on Friday, November 1st. Finally, Roth Mkm restated a “buy” rating and set a $10.00 price target on shares of Applied Digital in a research note on Thursday, October 10th. Six equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $10.50.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The company has a fifty day moving average of $7.31 and a 200-day moving average of $5.63. The firm has a market cap of $1.97 billion, a P/E ratio of -7.62 and a beta of 4.65.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.13. The business had revenue of $60.70 million for the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The firm’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.10) earnings per share. On average, sell-side analysts anticipate that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 19,369 shares of the firm’s stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $7.51, for a total transaction of $145,461.19. Following the completion of the sale, the director now owns 384,317 shares in the company, valued at $2,886,220.67. This trade represents a 4.80 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $5.50, for a total transaction of $55,000.00. Following the completion of the sale, the director now directly owns 218,506 shares in the company, valued at $1,201,783. This trade represents a 4.38 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 119,369 shares of company stock valued at $870,161. 11.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Headlands Technologies LLC increased its stake in shares of Applied Digital by 381.8% in the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after purchasing an additional 6,933 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in Applied Digital in the 3rd quarter valued at approximately $59,000. ARS Investment Partners LLC bought a new position in shares of Applied Digital in the second quarter worth $60,000. Beacon Harbor Wealth Advisors Inc. bought a new stake in shares of Applied Digital during the 3rd quarter valued at $83,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Applied Digital in the third quarter worth about $88,000. 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.