Applied Digital (NASDAQ:APLD) Sees Large Volume Increase – Should You Buy?

Applied Digital Co. (NASDAQ:APLD) shares saw an uptick in trading volume on Monday . 9,305,650 shares changed hands during mid-day trading, an increase of 25% from the previous session’s volume of 7,432,569 shares.The stock last traded at $8.35 and had previously closed at $7.23.

Analysts Set New Price Targets

APLD has been the subject of several recent analyst reports. Lake Street Capital upped their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Craig Hallum raised their price target on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Needham & Company LLC reissued a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research report on Friday, November 1st. HC Wainwright lifted their price target on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Finally, B. Riley increased their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research report on Friday, September 13th. Six equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $10.50.

Applied Digital Price Performance

The company’s fifty day simple moving average is $7.37 and its 200-day simple moving average is $5.67. The stock has a market cap of $1.89 billion, a P/E ratio of -7.92 and a beta of 4.65. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

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

Insider Activity at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 5th. The shares were 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 owns 218,506 shares of the company’s stock, valued at approximately $1,201,783. This trade represents a 4.38 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard N. Nottenburg sold 80,000 shares of the business’s stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total value of $589,600.00. Following the completion of the transaction, the director now directly owns 433,686 shares in the company, valued at $3,196,265.82. The trade was a 15.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 119,369 shares of company stock valued at $870,161 in the last 90 days. 11.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in Applied Digital during the third quarter valued at approximately $59,000. Headlands Technologies LLC lifted its holdings in shares of Applied Digital by 381.8% during the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after purchasing an additional 6,933 shares in the last quarter. ARS Investment Partners LLC bought a new position in shares of Applied Digital during the 2nd quarter valued at about $60,000. Beacon Harbor Wealth Advisors Inc. acquired a new position in shares of Applied Digital in the 3rd quarter valued at approximately $83,000. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in Applied Digital during the 3rd quarter worth approximately $88,000. Institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

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.