Applied Digital (NASDAQ:APLD) Stock Price Up 15.8% After Better-Than-Expected Earnings

Shares of Applied Digital Co. (NASDAQ:APLD) were up 15.8% during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $9.72 and last traded at $9.00. Approximately 38,717,260 shares traded hands during trading, an increase of 116% from the average daily volume of 17,919,533 shares. The stock had previously closed at $7.77.

The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.08. The firm had revenue of $63.87 million during the quarter, compared to analysts’ expectations of $62.41 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The business’s revenue for the quarter was up 51.3% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.05) earnings per share.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Lake Street Capital lifted their target price on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Craig Hallum lifted their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Cantor Fitzgerald lowered their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Wednesday. Finally, HC Wainwright increased their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Wednesday. Seven research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $11.29.

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 19,369 shares of the firm’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $7.51, for a total value of $145,461.19. Following the completion of the transaction, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares in the company, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 269,369 shares of company stock valued at $2,445,461 in the last ninety days. 11.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in APLD. Bank of New York Mellon Corp lifted its stake in Applied Digital by 36.2% in the second quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock valued at $1,814,000 after acquiring an additional 80,958 shares during the last quarter. Commonwealth Equity Services LLC lifted its stake in Applied Digital by 115.7% in 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 during the last quarter. Rhumbline Advisers lifted its stake in Applied Digital by 30.0% in the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock valued at $834,000 after purchasing an additional 32,336 shares during the last quarter. L & S Advisors Inc bought a new position in Applied Digital during the second quarter worth about $122,000. Finally, Thomist Capital Management LP acquired a new position in Applied Digital during the second quarter worth approximately $2,529,000. 65.67% of the stock is owned by institutional investors.

Applied Digital Stock Up 7.3 %

The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market cap of $1.90 billion, a P/E ratio of -7.68 and a beta of 4.78. The firm has a 50 day simple moving average of $8.79 and a 200-day simple moving average of $6.96.

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.