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

Applied Digital Co. (NASDAQ:APLD) gapped up prior to trading on Thursday . The stock had previously closed at $8.10, but opened at $8.59. Applied Digital shares last traded at $8.15, with a volume of 5,908,512 shares trading hands.

Wall Street Analysts Forecast Growth

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

Applied Digital Trading Up 2.6 %

The stock has a 50-day moving average price of $8.41 and a two-hundred day moving average price of $7.59. The stock has a market capitalization of $1.85 billion, a P/E ratio of -4.80 and a beta of 4.78. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77.

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

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 20,000 shares of the business’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the sale, the director now owns 342,923 shares in the company, valued at approximately $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 11.81% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Wilmington Savings Fund Society FSB grew its holdings in Applied Digital by 100.0% in the fourth 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 period. R Squared Ltd purchased a new position in Applied Digital during the fourth quarter worth approximately $36,000. US Bancorp DE acquired a new stake in shares of Applied Digital in the 4th quarter worth $37,000. Jones Financial Companies Lllp purchased a new stake in shares of Applied Digital in the fourth quarter valued at about $39,000. Finally, Spire Wealth Management acquired a new stake in Applied Digital during the fourth quarter worth about $43,000. Institutional investors own 65.67% of the company’s stock.

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.