Applied Digital (NASDAQ:APLD) Shares Gap Up – What’s Next?

Applied Digital Co. (NASDAQ:APLD) shares gapped up prior to trading on Tuesday . The stock had previously closed at $7.75, but opened at $7.93. Applied Digital shares last traded at $8.77, with a volume of 3,500,361 shares changing hands.

Analysts Set New Price Targets

APLD has been the topic of several recent analyst reports. HC Wainwright lifted their price target on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Lake Street Capital boosted their price objective on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. B. Riley boosted their price objective on Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Friday, September 13th. Craig Hallum boosted their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Finally, Roth Mkm restated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Six research analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital presently has an average rating of “Buy” and a consensus price target of $10.50.

Applied Digital Price Performance

The company has a market capitalization of $1.89 billion, a price-to-earnings ratio of -7.92 and a beta of 4.65. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The business has a 50 day moving average price of $7.37 and a 200-day moving average price of $5.67.

Applied Digital (NASDAQ:APLD) last issued 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. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business had revenue of $60.70 million during the quarter, compared to analyst estimates of $54.85 million. During the same period in the previous year, the company posted ($0.10) EPS. The firm’s revenue was up 67.2% compared to the same quarter last year. Research analysts predict that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 19,369 shares of the company’s stock in a transaction that occurred on 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. This represents a 4.80 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on 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 transaction, the director now owns 218,506 shares in the company, valued at approximately $1,201,783. The trade was a 4.38 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 119,369 shares of company stock valued at $870,161 in the last three months. Corporate insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors have recently bought and sold shares of APLD. Vanguard Group Inc. lifted its stake 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 purchasing an additional 2,547,485 shares during the last quarter. Geode Capital Management LLC lifted its stake in Applied Digital by 48.7% in the third quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock valued at $25,258,000 after purchasing an additional 1,002,862 shares during the last quarter. Hood River Capital Management LLC lifted its stake in Applied Digital by 8.7% in the second quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock valued at $57,098,000 after purchasing an additional 771,699 shares during the last quarter. Alight Capital Management LP purchased a new position in Applied Digital in the second quarter valued at approximately $3,570,000. Finally, Van ECK Associates Corp lifted its position in shares of Applied Digital by 18.3% during the second quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock worth $17,077,000 after acquiring an additional 443,699 shares in the last quarter. Hedge funds and other 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.