Applied Digital (NASDAQ:APLD) Trading 5.1% Higher – Should You Buy?

Applied Digital Co. (NASDAQ:APLD)’s share price rose 5.1% during trading on Friday . The stock traded as high as $10.20 and last traded at $10.15. Approximately 2,481,360 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 7,914,301 shares. The stock had previously closed at $9.66.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. HC Wainwright lifted their price target on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research note on Wednesday, October 16th. Roth Mkm reissued a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. B. Riley increased their target price on shares of Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research report on Friday, November 1st. Finally, Craig Hallum increased 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. Six analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital presently has a consensus rating of “Buy” and a consensus target price of $10.50.

Applied Digital Price Performance

The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a fifty day moving average of $7.89 and a two-hundred day moving average of $5.95. The stock has a market cap of $2.19 billion, a price-to-earnings ratio of -8.88 and a beta of 4.65.

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

Insider Activity

In other news, Director Richard N. Nottenburg sold 80,000 shares of Applied Digital stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total value of $589,600.00. Following the completion of the transaction, the director now owns 433,686 shares in the company, valued at approximately $3,196,265.82. This trade represents a 15.57 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction on Thursday, October 17th. The stock was sold at an average price of $8.01, for a total transaction of $80,100.00. Following the completion of the transaction, the director now directly owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. This represents a 4.58 % decrease in their position. The disclosure for this sale can be found here. Insiders have 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.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in APLD. Headlands Technologies LLC lifted its stake in Applied Digital by 381.8% in the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after buying an additional 6,933 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Applied Digital in the 3rd quarter valued at about $59,000. ARS Investment Partners LLC acquired a new position in Applied Digital during the 2nd quarter valued at about $60,000. Beacon Harbor Wealth Advisors Inc. bought a new position in Applied Digital in the 3rd quarter worth about $83,000. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Applied Digital in the 3rd quarter worth about $88,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.