Applied Digital (NASDAQ:APLD) Shares Up 10.1% – Should You Buy?

Applied Digital Co. (NASDAQ:APLD) shares traded up 10.1% during mid-day trading on Friday . The company traded as high as $8.63 and last traded at $8.59. Approximately 5,429,238 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 7,678,491 shares. The stock had previously closed at $7.80.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Cantor Fitzgerald began coverage on Applied Digital in a research note on Friday, December 20th. They set an “overweight” rating and a $15.00 price objective for the company. Lake Street Capital lifted their target price on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Craig Hallum upped their price target 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 reissued a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a research note on Friday, November 1st. Finally, HC Wainwright upped their price objective on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Seven analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $11.14.

Applied Digital Trading Up 13.3 %

The company has a market cap of $1.87 billion, a price-to-earnings ratio of -7.56 and a beta of 4.67. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The business’s 50 day moving average price is $8.48 and its 200-day moving average price is $6.76.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, beating 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 for the quarter, compared to analyst estimates of $54.85 million. During the same period last year, the firm earned ($0.10) EPS. The business’s quarterly revenue was up 67.2% compared to the same quarter last year. On average, equities analysts anticipate that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the transaction, the director now directly owns 208,506 shares in the company, valued at approximately $1,670,133.06. This represents a 4.58 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 80,000 shares of Applied Digital stock in a transaction on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the transaction, the director now owns 433,686 shares in the company, valued at approximately $3,196,265.82. This trade represents a 15.57 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 359,369 shares of company stock worth $3,115,161. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp lifted its position in shares of Applied Digital by 36.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock worth $1,814,000 after purchasing an additional 80,958 shares during the period. Commonwealth Equity Services LLC boosted its position in shares of Applied Digital by 115.7% during the 2nd quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company’s stock valued at $397,000 after purchasing an additional 35,768 shares in the last quarter. Rhumbline Advisers grew its position in shares of Applied Digital by 30.0% during the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock worth $834,000 after buying an additional 32,336 shares during the period. Crumly & Associates Inc. acquired a new position in shares of Applied Digital during the 2nd quarter valued at $110,000. Finally, Headlands Technologies LLC boosted its stake in Applied Digital by 381.8% during the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after acquiring an additional 6,933 shares in the last quarter. 65.67% of the stock is owned by institutional investors.

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.