Applied Digital (NASDAQ:APLD) Shares Up 7.9% – Should You Buy?

Applied Digital Co. (NASDAQ:APLD) shares were up 7.9% during mid-day trading on Tuesday . The stock traded as high as $9.92 and last traded at $9.83. Approximately 13,601,290 shares traded hands during trading, a decline of 43% from the average daily volume of 23,763,803 shares. The stock had previously closed at $9.11.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on APLD. Northland Securities increased their price objective on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a research note on Tuesday, February 4th. Cantor Fitzgerald cut their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 15th. HC Wainwright raised 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, January 15th. Needham & Company LLC restated a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a research note on Wednesday, January 15th. Finally, Compass Point started coverage on Applied Digital in a report on Tuesday, January 28th. They set a “buy” rating and a $10.00 price objective on the stock. Nine investment analysts have rated the stock with a buy rating, According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $12.11.

Applied Digital Stock Performance

The firm’s fifty day simple moving average is $8.45 and its 200 day simple moving average is $7.43. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The company has a market capitalization of $2.27 billion, a price-to-earnings ratio of -5.88 and a beta of 4.77.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The business had revenue of $63.87 million during the quarter, compared to analysts’ expectations of $62.41 million. During the same period last year, the company posted ($0.05) earnings per share. The firm’s quarterly revenue was up 51.3% compared to the same quarter last year. On average, sell-side analysts forecast that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, CEO Wes Cummins sold 200,000 shares of the business’s 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 transaction, the chief executive officer now directly owns 3,875,955 shares in the company, valued at $35,658,786. The trade was a 4.91 % 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. Also, Director Richard N. Nottenburg sold 50,000 shares of the firm’s stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $460,000.00. Following the sale, the director now directly owns 334,317 shares of the company’s stock, valued at $3,075,716.40. This represents a 13.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 270,000 shares of company stock worth $2,477,000 over the last 90 days. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Wilmington Savings Fund Society FSB boosted its stake in shares of Applied Digital by 100.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock valued at $31,000 after purchasing an additional 2,000 shares during the last quarter. R Squared Ltd acquired a new stake in Applied Digital during the 4th quarter worth $36,000. US Bancorp DE acquired a new position in shares of Applied Digital in the 4th quarter valued at $37,000. Jones Financial Companies Lllp acquired a new position in shares of Applied Digital in the 4th quarter valued at $39,000. Finally, Spire Wealth Management acquired a new stake in shares of Applied Digital during the fourth quarter worth $43,000. 65.67% of the stock is currently 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.