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

Shares of Applied Digital Co. (NASDAQ:APLD) gapped up prior to trading on Monday . The stock had previously closed at $9.85, but opened at $10.37. Applied Digital shares last traded at $10.39, with a volume of 3,286,730 shares traded.

Analyst Upgrades and Downgrades

Several brokerages recently commented on APLD. Roth Mkm restated a “buy” rating and set a $10.00 target price on shares of Applied Digital in a report on Thursday, October 10th. B. Riley lifted their target price on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research report on Friday, September 13th. Needham & Company LLC reiterated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a report on Friday, November 1st. Craig Hallum raised their price target on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Finally, Lake Street Capital increased their price objective on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Six investment analysts have rated the stock with a buy rating, According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $10.50.

Applied Digital Trading Up 7.7 %

The business has a 50 day moving average of $7.56 and a two-hundred day moving average of $5.80. The firm has a market cap of $2.29 billion, a P/E ratio of -9.13 and a beta of 4.65. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

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

Insider Transactions at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the firm’s 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 transaction, the director now directly owns 218,506 shares of the company’s stock, valued at approximately $1,201,783. This trade represents a 4.38 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 19,369 shares of the business’s stock in a transaction dated Thursday, November 7th. The shares were 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 directly owns 384,317 shares of the company’s stock, valued at $2,886,220.67. This represents a 4.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 119,369 shares of company stock worth $870,161 over the last quarter. Company insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tidal Investments LLC acquired a new stake in Applied Digital during the third quarter worth about $95,000. Virtu Financial LLC acquired a new stake in shares of Applied Digital during the 3rd quarter worth approximately $2,030,000. Geode Capital Management LLC increased its stake 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 valued at $25,258,000 after acquiring an additional 1,002,862 shares during the last quarter. Barclays PLC raised its position in Applied Digital by 736.8% during the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after purchasing an additional 428,428 shares in the last quarter. Finally, Main Management ETF Advisors LLC acquired a new stake in shares of Applied Digital in the 3rd quarter valued at $1,575,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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.