Applied Digital (NASDAQ:APLD) Shares Gap Up Following Earnings Beat

Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $7.77, but opened at $9.53. Applied Digital shares last traded at $9.13, with a volume of 27,304,694 shares changing hands.

The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The company had revenue of $63.87 million during the quarter, compared to analysts’ expectations of $62.41 million. During the same quarter last year, the company earned ($0.05) EPS. Applied Digital’s revenue for the quarter was up 51.3% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Needham & Company LLC reiterated a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research note on Wednesday. Cantor Fitzgerald cut their price target on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday. Craig Hallum raised their target price on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Roth Mkm reissued a “buy” rating and set a $10.00 price target on shares of Applied Digital in a research report on Thursday, October 10th. Finally, HC Wainwright raised their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday. Seven investment analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, Applied Digital has an average rating of “Buy” and an average target price of $11.29.

Insider Activity

In other news, Director Richard N. Nottenburg sold 19,369 shares of the business’s stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $7.51, for a total value of $145,461.19. Following the completion of the sale, the director now owns 384,317 shares of the company’s stock, valued at approximately $2,886,220.67. The trade was a 4.80 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the transaction, the chief executive officer now directly owns 3,875,955 shares in the company, valued at approximately $35,658,786. This represents a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 269,369 shares of company stock valued at $2,445,461. 11.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in APLD. SeaCrest Wealth Management LLC bought a new stake in shares of Applied Digital in the fourth quarter valued at approximately $586,000. Gunderson Capital Management Inc. acquired a new position in Applied Digital in the 4th quarter valued at $83,000. JPMorgan Chase & Co. lifted its stake in Applied Digital by 18.4% during the third quarter. JPMorgan Chase & Co. now owns 56,355 shares of the company’s stock worth $465,000 after purchasing an additional 8,774 shares during the last quarter. Tidal Investments LLC acquired a new stake in shares of Applied Digital in the 3rd quarter valued at $95,000. Finally, Virtu Financial LLC bought a new position in shares of Applied Digital in the 3rd quarter valued at $2,030,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Stock Down 2.0 %

The business has a fifty day moving average price of $8.77 and a 200 day moving average price of $6.95. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

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.