Applied Digital (NASDAQ:APLD) Shares Gap Up – Time to Buy?

Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday . The stock had previously closed at $7.97, but opened at $8.23. Applied Digital shares last traded at $7.90, with a volume of 1,790,467 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on APLD. B. Riley boosted their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Roth Mkm reaffirmed a “buy” rating and issued a $10.00 target price on shares of Applied Digital in a report on Thursday, October 10th. HC Wainwright boosted their price target on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Cantor Fitzgerald started coverage on shares of Applied Digital in a research report on Friday, December 20th. They set an “overweight” rating and a $15.00 target price on the stock. Finally, Lake Street Capital lifted their price target on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Seven investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, Applied Digital presently has a consensus rating of “Buy” and an average price target of $11.14.

Applied Digital Price Performance

The firm’s 50-day moving average price is $8.53 and its two-hundred day moving average price is $6.72. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market cap of $1.63 billion, a PE ratio of -6.59 and a beta of 4.67.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.13. The company had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. Applied Digital’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.10) earnings per share. On average, equities analysts expect that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 19,369 shares of Applied Digital 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 directly owns 384,317 shares of the company’s stock, valued at $2,886,220.67. The trade was a 4.80 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the transaction, the director now owns 208,506 shares of the company’s stock, valued at $1,670,133.06. The trade was a 4.58 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 359,369 shares of company stock valued at $3,115,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Institutional investors have recently bought and sold shares of the business. Geode Capital Management LLC raised its position in shares of Applied Digital by 48.7% during the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after acquiring an additional 1,002,862 shares in the last quarter. Hood River Capital Management LLC raised its stake in Applied Digital by 8.7% during the 2nd quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock worth $57,098,000 after acquiring an additional 771,699 shares in the last quarter. Alight Capital Management LP purchased a new stake in Applied Digital in the second quarter valued at $3,570,000. Barclays PLC boosted its stake in Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after acquiring an additional 428,428 shares in the last quarter. Finally, Thomist Capital Management LP purchased a new position in shares of Applied Digital during the second quarter worth about $2,529,000. 65.67% of the stock is owned by hedge funds and other 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.