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

Applied Digital Co. (NASDAQ:APLD) gapped up prior to trading on Tuesday . The stock had previously closed at $6.48, but opened at $6.92. Applied Digital shares last traded at $6.59, with a volume of 5,899,302 shares traded.

Analyst Ratings Changes

Several brokerages recently issued reports on APLD. Cantor Fitzgerald decreased their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 15th. Craig Hallum boosted their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Compass Point initiated coverage on shares of Applied Digital in a research note on Tuesday. They set a “buy” rating and a $10.00 target price for the company. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Wednesday, January 15th. Finally, Roth Mkm restated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Eight analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital presently has an average rating of “Buy” and an average price target of $11.13.

Applied Digital Stock Up 2.6 %

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The company’s fifty day moving average price is $8.93 and its 200-day moving average price is $7.09. The stock has a market cap of $1.49 billion, a P/E ratio of -3.87 and a beta of 4.78.

Applied Digital (NASDAQ:APLD) last announced its earnings results 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 during the quarter, compared to analyst estimates of $62.41 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. The company’s revenue for the quarter was up 51.3% compared to the same quarter last year. Equities analysts forecast that Applied Digital Co. will post -0.8 EPS for the current year.

Insider Transactions at Applied Digital

In related news, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares in the company, valued at $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, 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 owns 342,923 shares in the company, valued at approximately $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 289,369 shares of company stock worth $2,622,461. 11.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently bought and sold shares of the business. Van ECK Associates Corp increased its holdings in shares of Applied Digital by 113.8% in the 4th quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock valued at $33,649,000 after acquiring an additional 2,344,572 shares during the period. 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 purchasing an additional 1,002,862 shares in the last quarter. State Street Corp lifted its position in shares of Applied Digital by 14.0% during the third quarter. State Street Corp now owns 2,337,267 shares of the company’s stock valued at $19,282,000 after buying an additional 286,852 shares during the last quarter. Royce & Associates LP boosted its holdings in shares of Applied Digital by 1.4% in the 3rd quarter. Royce & Associates LP now owns 1,132,140 shares of the company’s stock valued at $9,340,000 after buying an additional 15,763 shares in the last quarter. Finally, Exchange Traded Concepts LLC grew its position in shares of Applied Digital by 37.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company’s stock worth $7,656,000 after buying an additional 273,666 shares during 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.