Applied Digital (NASDAQ:APLD) Trading Up 4% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shares rose 4% during trading on Thursday . The company traded as high as $25.97 and last traded at $25.91. 15,760,353 shares traded hands during mid-day trading, a decline of 32% from the average session volume of 23,313,639 shares. The stock had previously closed at $24.91.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Citizens Jmp upped their target price on Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research report on Thursday, May 21st. Wall Street Zen lowered shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Compass Point reaffirmed a “buy” rating and issued a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Monday, August 3rd. Finally, Lake Street Capital raised their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Applied Digital presently has an average rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The company has a 50-day simple moving average of $29.15 and a two-hundred day simple moving average of $32.97. The stock has a market capitalization of $7.69 billion, a price-to-earnings ratio of -29.63 and a beta of 5.72.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The firm had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business’s revenue was up 406.3% compared to the same quarter last year. During the same period last year, the firm posted ($0.24) EPS. On average, equities research analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares of the company’s stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Ameriflex Group Inc. acquired a new stake in shares of Applied Digital in the fourth quarter valued at $25,000. McMillan Office Inc. acquired a new position in Applied Digital during the fourth quarter worth about $25,000. Larson Financial Group LLC grew its holdings in Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after acquiring an additional 1,129 shares during the period. Northwestern Mutual Wealth Management Co. bought a new stake in Applied Digital in the second quarter worth about $26,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in Applied Digital in the fourth quarter worth about $27,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

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.