Applied Digital (NASDAQ:APLD) Shares Up 2.9% – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s share price shot up 2.9% during trading on Thursday . The stock traded as high as $7.50 and last traded at $7.47. 3,726,318 shares traded hands during trading, a decline of 86% from the average session volume of 26,463,895 shares. The stock had previously closed at $7.26.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on APLD. Cantor Fitzgerald dropped their price objective on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a report on Wednesday, January 15th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a report on Monday, February 24th. Northland Securities upped their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a report on Tuesday, February 4th. Compass Point began coverage on Applied Digital in a report on Tuesday, January 28th. They set a “buy” rating and a $10.00 price objective on the stock. Finally, HC Wainwright upped their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, January 15th. Nine equities research analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $12.11.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The company has a 50-day moving average price of $7.98 and a 200-day moving average price of $7.89. The firm has a market capitalization of $1.62 billion, a PE ratio of -4.21 and a beta of 4.69.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The business had revenue of $63.87 million for the quarter, compared to the consensus estimate of $62.41 million. During the same period in the prior year, the business earned ($0.05) earnings per share. The business’s revenue was up 51.3% on a year-over-year basis. Sell-side analysts forecast that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now directly owns 342,923 shares in the company, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 11.81% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Large investors have recently modified their holdings of the company. Wilmington Savings Fund Society FSB raised its holdings in shares of Applied Digital by 100.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after purchasing an additional 2,000 shares during the period. R Squared Ltd acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $36,000. US Bancorp DE acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $37,000. Jones Financial Companies Lllp acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $39,000. Finally, Spire Wealth Management acquired a new stake in shares of Applied Digital in the fourth quarter valued at about $43,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.