Applied Digital (NASDAQ:APLD) Shares Up 5.5% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shares shot up 5.5% on Tuesday . The company traded as high as $36.73 and last traded at $36.70. 26,504,245 shares traded hands during trading, a decline of 34% from the average session volume of 40,254,863 shares. The stock had previously closed at $34.80.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Lake Street Capital reaffirmed a “buy” rating and issued a $45.00 price objective on shares of Applied Digital in a report on Tuesday, December 30th. Northland Securities set a $56.00 price target on shares of Applied Digital in a report on Wednesday, January 28th. HC Wainwright raised their price target on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a report on Friday, October 10th. B. Riley lifted their price objective on shares of Applied Digital to $53.00 and gave the company a “buy” rating in a research report on Friday, January 9th. Finally, Craig Hallum lifted their target price on Applied Digital to $39.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $34.73.

Applied Digital Stock Performance

The company has a market capitalization of $10.26 billion, a P/E ratio of -67.96 and a beta of 6.89. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The business has a 50-day moving average of $30.55 and a 200-day moving average of $24.93.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The firm had revenue of $126.59 million during the quarter, compared to the consensus estimate of $82.22 million. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.Applied Digital’s revenue was up 250.1% compared to the same quarter last year. During the same quarter last year, the business posted ($0.06) EPS. On average, sell-side analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current year.

Insiders Place Their Bets

In other news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $38.54, for a total transaction of $385,400.00. Following the transaction, the director owned 200,859 shares of the company’s stock, valued at approximately $7,741,105.86. This represents a 4.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the sale, the director directly owned 233,378 shares of the company’s stock, valued at $8,273,250.10. This represents a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 244,593 shares of company stock worth $9,003,278. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of large investors have recently made changes to their positions in APLD. International Assets Investment Management LLC purchased a new position in Applied Digital in the 4th quarter worth about $1,410,000. SBI Securities Co. Ltd. increased its position in shares of Applied Digital by 51.2% during the fourth quarter. SBI Securities Co. Ltd. now owns 29,502 shares of the company’s stock worth $723,000 after acquiring an additional 9,996 shares during the period. Dudley Capital Management LLC purchased a new position in shares of Applied Digital during the fourth quarter worth approximately $204,000. Strs Ohio raised its stake in shares of Applied Digital by 40.9% during the fourth quarter. Strs Ohio now owns 33,400 shares of the company’s stock valued at $819,000 after acquiring an additional 9,700 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in shares of Applied Digital in the fourth quarter valued at approximately $54,000. 65.67% of the stock is owned by hedge funds and other 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.