Applied Digital Sees Unusually Large Options Volume (NASDAQ:APLD)

Applied Digital Co. (NASDAQ:APLD) was the recipient of unusually large options trading on Monday. Stock traders bought 57,267 call options on the company. This is an increase of 108% compared to the typical daily volume of 27,595 call options.

Applied Digital Stock Performance

Shares of Applied Digital stock traded up $0.40 during trading on Monday, hitting $7.63. 21,637,452 shares of the company’s stock were exchanged, compared to its average volume of 7,484,074. Applied Digital has a 52-week low of $2.36 and a 52-week high of $9.48. 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 stock has a market capitalization of $1.64 billion, a price-to-earnings ratio of -7.14 and a beta of 4.65. The business has a 50-day simple moving average of $7.29 and a 200-day simple moving average of $5.59.

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

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 19,369 shares of Applied Digital stock in a transaction 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 sale, the director now owns 384,317 shares of the company’s stock, valued at $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 is available at this link. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the sale, 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 ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 119,369 shares of company stock valued at $870,161. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of APLD. Wellington Management Group LLP increased its position in shares of Applied Digital by 8.8% during the third quarter. Wellington Management Group LLP now owns 37,411 shares of the company’s stock worth $309,000 after purchasing an additional 3,040 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Applied Digital by 15.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 24,018 shares of the company’s stock worth $103,000 after purchasing an additional 3,182 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in shares of Applied Digital by 14.4% during the third quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company’s stock valued at $355,000 after acquiring an additional 5,423 shares during the last quarter. FMR LLC raised its position in Applied Digital by 99.1% in the third quarter. FMR LLC now owns 13,071 shares of the company’s stock valued at $108,000 after purchasing an additional 6,507 shares during the period. Finally, ICA Group Wealth Management LLC raised its holdings in shares of Applied Digital by 56.8% in the 2nd quarter. ICA Group Wealth Management LLC now owns 18,750 shares of the company’s stock valued at $112,000 after buying an additional 6,795 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently commented on APLD. HC Wainwright boosted their target price on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Craig Hallum lifted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Lake Street Capital upped their price objective on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Roth Mkm reaffirmed a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. Finally, Needham & Company LLC restated a “buy” rating and issued a $11.00 price objective on shares of Applied Digital in a report on Friday, November 1st. Six research analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital currently has a consensus rating of “Buy” and an average price target of $10.50.

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.