Applied Digital (NASDAQ:APLD) Shares Gap Up – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD)’s share price gapped up before the market opened 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.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on APLD. B. Riley lifted their price target on Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Roth Mkm restated a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. HC Wainwright boosted 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. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price objective on shares of Applied Digital in a research report on Friday, November 1st. Finally, Lake Street Capital raised their target price on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Six research analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $10.50.

Applied Digital Trading Up 17.8 %

The stock’s 50 day moving average is $7.31 and its 200-day moving average is $5.63. 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 capitalization of $1.97 billion, a P/E ratio of -7.62 and a beta of 4.65.

Applied Digital (NASDAQ:APLD) last released 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. The company had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The firm’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same quarter last year, the business posted ($0.10) EPS. As a group, equities research analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insider Activity

In related news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $5.50, for a total transaction of $55,000.00. Following the completion of the transaction, the director now directly owns 218,506 shares of the company’s stock, valued at $1,201,783. This trade represents a 4.38 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 19,369 shares of the company’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $7.51, for a total transaction of $145,461.19. Following the completion of the sale, the director now owns 384,317 shares in the company, valued at approximately $2,886,220.67. This trade represents a 4.80 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 119,369 shares of company stock worth $870,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Hood River Capital Management LLC increased its holdings in shares of Applied Digital by 8.7% during 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 acquiring an additional 771,699 shares in the last quarter. Vanguard Group Inc. increased its stake in Applied Digital by 70.2% during the 1st 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 in the last quarter. Geode Capital Management LLC raised its holdings 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 worth $25,258,000 after buying an additional 1,002,862 shares during the last quarter. Van ECK Associates Corp lifted its stake in shares of Applied Digital by 18.3% in the second quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock worth $17,077,000 after buying an additional 443,699 shares in the last quarter. Finally, State Street Corp lifted its stake in shares of Applied Digital by 14.0% in the third quarter. State Street Corp now owns 2,337,267 shares of the company’s stock worth $19,282,000 after buying an additional 286,852 shares in the last quarter. 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.