Applied Digital (NASDAQ:APLD) Trading Up 10.7% - Still a Buy?

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares shot up 10.7% during trading on Wednesday . The company traded as high as $8.78 and last traded at $8.77. 10,155,628 shares changed hands during trading, an increase of 17% from the average session volume of 8,647,539 shares. The stock had previously closed at $7.92.

Wall Street Analyst Weigh In

APLD has been the subject of a number of research analyst reports. HC Wainwright raised their price target on Applied Digital from $5.00 to $10.00 and gave the company a "buy" rating in a research report on Wednesday, October 16th. Needham & Company LLC restated a "buy" rating and set a $11.00 target price on shares of Applied Digital in a report on Friday, November 1st. Lake Street Capital lifted their target price on shares of Applied Digital from $7.00 to $11.00 and gave the stock a "buy" rating in a research report on Thursday, October 10th. Roth Mkm reiterated a "buy" rating and issued a $10.00 price target on shares of Applied Digital in a research report on Thursday, October 10th. Finally, Craig Hallum raised their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research note on Thursday, October 10th. Seven analysts have rated the stock with a buy rating, According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $11.14.

Applied Digital Price Performance

The company has a market capitalization of $1.85 billion, a price-to-earnings ratio of -7.50 and a beta of 4.67. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The company's 50 day simple moving average is $8.50 and its 200-day simple moving average is $6.60.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced 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. The firm had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. Applied Digital's revenue was up 67.2% compared to the same quarter last year. During the same quarter last year, the business earned ($0.10) earnings per share. On average, equities research analysts predict that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the sale, the director now directly owns 208,506 shares of the company's stock, valued at approximately $1,670,133.06. This trade represents a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard N. Nottenburg sold 50,000 shares of the company's stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $460,000.00. Following the transaction, the director now directly owns 334,317 shares of the company's stock, valued at $3,075,716.40. This trade represents a 13.01 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 359,369 shares of company stock valued at $3,115,161 over the last quarter. Company insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Bank of New York Mellon Corp increased its stake in Applied Digital by 36.2% during the second quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company's stock worth $1,814,000 after acquiring an additional 80,958 shares during the last quarter. Commonwealth Equity Services LLC raised its holdings in Applied Digital by 115.7% in the second quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company's stock valued at $397,000 after buying an additional 35,768 shares during the period. Van ECK Associates Corp lifted its position in Applied Digital by 18.3% during the second quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company's stock valued at $17,077,000 after buying an additional 443,699 shares in the last quarter. Rhumbline Advisers grew its stake in Applied Digital by 30.0% during the second quarter. Rhumbline Advisers now owns 140,087 shares of the company's stock worth $834,000 after buying an additional 32,336 shares during the period. Finally, Crumly & Associates Inc. acquired a new stake in shares of Applied Digital in the second quarter worth $110,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.