Applied Digital (NASDAQ:APLD) Trading Up 1.7% – Should You Buy?

Applied Digital Co. (NASDAQ:APLD)’s stock price rose 1.7% on Wednesday . The stock traded as high as $7.18 and last traded at $7.13. Approximately 3,296,112 shares were traded during trading, a decline of 88% from the average daily volume of 26,598,998 shares. The stock had previously closed at $7.01.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Compass Point initiated coverage on Applied Digital in a report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target on the stock. Cantor Fitzgerald decreased their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Wednesday, January 15th. Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research report on Monday, February 24th. HC Wainwright raised their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Wednesday, January 15th. Finally, Northland Securities upped their target price on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. Nine research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $12.11.

Applied Digital Price Performance

The stock’s 50 day simple moving average is $7.96 and its 200-day simple moving average is $7.89. The stock has a market capitalization of $1.58 billion, a price-to-earnings ratio of -4.11 and a beta of 4.69. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The firm 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 posted ($0.05) earnings per share. The business’s quarterly revenue was up 51.3% on a year-over-year basis. On average, analysts expect that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value 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 trade represents a 5.51 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 11.81% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vontobel Holding Ltd. boosted its stake in Applied Digital by 9.8% during the 4th quarter. Vontobel Holding Ltd. now owns 16,735 shares of the company’s stock valued at $128,000 after purchasing an additional 1,500 shares during the period. Nisa Investment Advisors LLC boosted its position in shares of Applied Digital by 16.8% in the fourth quarter. Nisa Investment Advisors LLC now owns 11,774 shares of the company’s stock valued at $90,000 after acquiring an additional 1,692 shares during the period. Wilmington Savings Fund Society FSB grew its stake in shares of Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after acquiring an additional 2,000 shares during the last quarter. Wellington Management Group LLP raised its stake in Applied Digital by 8.8% during the 3rd quarter. Wellington Management Group LLP now owns 37,411 shares of the company’s stock valued at $309,000 after purchasing an additional 3,040 shares during the last quarter. Finally, Amalgamated Bank boosted its holdings in Applied Digital by 113.3% in the 4th quarter. Amalgamated Bank now owns 6,538 shares of the company’s stock valued at $50,000 after purchasing an additional 3,473 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

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.