Applied Digital (NASDAQ:APLD) Stock Price Up 11.8% - Should You Buy?

Applied Digital Co. (NASDAQ:APLD - Get Free Report)'s stock price shot up 11.8% on Friday . The stock traded as high as $12.48 and last traded at $11.38. 33,883,226 shares were traded during trading, an increase of 35% from the average session volume of 25,027,541 shares. The stock had previously closed at $10.18.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Northland Securities raised their target price on Applied Digital from $12.00 to $20.00 and gave the company an "outperform" rating in a research report on Tuesday, February 4th. Compass Point assumed coverage on Applied Digital in a research note on Tuesday, January 28th. They issued a "buy" rating and a $10.00 target price for the company. Cantor Fitzgerald dropped their price target 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. HC Wainwright lifted their price target on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Wednesday, January 15th. Finally, Needham & Company LLC restated a "buy" rating and issued a $11.00 target price on shares of Applied Digital in a research report on Wednesday, January 15th. Nine equities research analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital presently has an average rating of "Buy" and a consensus target price of $12.11.

Applied Digital Stock Performance

The company has a market cap of $2.37 billion, a P/E ratio of -6.16 and a beta of 4.77. The business's 50 day simple moving average is $8.45 and its 200 day simple moving average is $7.43. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping analysts' consensus estimates 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 company had revenue of $63.87 million for the quarter, compared to analysts' expectations of $62.41 million. During the same quarter last year, the business earned ($0.05) EPS. The firm's revenue was up 51.3% compared to the same quarter last year. Sell-side analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 50,000 shares of the business's stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $460,000.00. Following the transaction, the director now owns 334,317 shares in the company, valued at $3,075,716.40. The trade was a 13.01 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Wes Cummins sold 200,000 shares of the company's stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares in the company, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 270,000 shares of company stock valued at $2,477,000. 11.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently modified their holdings of the stock. Mackenzie Financial Corp acquired a new position in Applied Digital in the 4th quarter worth approximately $92,000. GTS Securities LLC acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $196,000. Two Seas Capital LP acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $5,062,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Applied Digital by 271.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 343,260 shares of the company's stock worth $2,623,000 after purchasing an additional 250,944 shares during the period. Finally, Vennlight Capital Management LP acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $2,786,000. Institutional investors and hedge funds 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.