Applied Digital (NASDAQ:APLD) Sees Large Volume Increase – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD) saw unusually-strong trading volume on Wednesday . Approximately 5,749,910 shares were traded during mid-day trading, a decline of 28% from the previous session’s volume of 7,975,390 shares.The stock last traded at $9.95 and had previously closed at $9.57.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on APLD shares. Needham & Company LLC reissued a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a research note on Friday, November 1st. HC Wainwright raised their price target on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a report on Wednesday, October 16th. Roth Mkm restated a “buy” rating and set a $10.00 price target on shares of Applied Digital in a report on Thursday, October 10th. Lake Street Capital lifted their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, B. Riley raised their price target on shares of Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research report on Friday, September 13th. Six equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, Applied Digital currently has an average rating of “Buy” and an average price target of $10.50.

Applied Digital Stock Down 1.4 %

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The company has a market cap of $1.99 billion, a price-to-earnings ratio of -8.74 and a beta of 4.67. The firm’s 50 day simple moving average is $8.08 and its 200-day simple moving average is $6.11.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.28) by $0.13. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The company had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. During the same quarter in the prior year, the firm posted ($0.10) earnings per share. Applied Digital’s revenue for the quarter was up 67.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insider Activity

In other news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $5.50, for a total value of $55,000.00. Following the completion of the sale, the director now directly owns 218,506 shares of the company’s stock, valued at approximately $1,201,783. This represents a 4.38 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 50,000 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $460,000.00. Following the completion of the sale, the director now directly owns 334,317 shares of the company’s stock, valued at $3,075,716.40. The trade was a 13.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 369,369 shares of company stock valued at $3,170,161. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. B. Riley Wealth Advisors Inc. raised its holdings in Applied Digital by 66.1% during the second quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock worth $4,609,000 after purchasing an additional 308,223 shares in the last quarter. Alight Capital Management LP purchased a new position in Applied Digital in the second quarter valued at about $3,570,000. Marshall Wace LLP purchased a new position in Applied Digital in the second quarter valued at about $720,000. Vanguard Group Inc. increased its holdings in Applied Digital by 70.2% in the first quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company’s stock valued at $26,434,000 after buying an additional 2,547,485 shares in the last quarter. Finally, Point72 Asset Management L.P. purchased a new position in Applied Digital in the second quarter valued at about $1,451,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

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.