Applied Digital (NASDAQ:APLD) Trading Up 1.3% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD)’s stock price rose 1.3% on Monday . The company traded as high as $35.79 and last traded at $33.50. 13,721,817 shares changed hands during trading, a decline of 45% from the average session volume of 25,113,313 shares. The stock had previously closed at $33.06.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on APLD. B. Riley Financial reissued a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Needham & Company LLC boosted their price target on shares of Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Friday, April 24th. Zacks Research downgraded Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Monday, June 8th. Finally, Roth Mkm restated a “buy” rating and issued a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $70.56.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The stock has a 50-day moving average price of $41.82 and a 200-day moving average price of $34.15. The company has a market capitalization of $9.57 billion, a price-to-earnings ratio of -45.27 and a beta of 5.67.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter last year, the company posted ($0.08) EPS. The firm’s revenue was up 139.3% on a year-over-year basis. As a group, analysts forecast that Applied Digital Corporation will post -0.7 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the transaction, the director directly owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 35,000 shares of company stock valued at $1,182,175. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently bought and sold shares of the company. Noble Wealth Management PBC acquired a new position in Applied Digital during the fourth quarter worth about $25,000. Albion Financial Group UT acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $25,000. Activest Wealth Management bought a new position in shares of Applied Digital during the fourth quarter worth about $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital in the fourth quarter worth approximately $25,000. Finally, McMillan Office Inc. bought a new stake in Applied Digital in the fourth quarter valued at approximately $25,000. 65.67% of the stock is owned by institutional investors.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.