Applied Digital (NASDAQ:APLD) Stock Price Up 15.8% on Strong Earnings

Applied Digital Co. (NASDAQ:APLD - Get Free Report)'s stock price was up 15.8% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $9.72 and last traded at $9.00. 38,717,260 shares were traded during trading, an increase of 116% from the average session volume of 17,919,533 shares. The stock had previously closed at $7.77.

The company reported ($0.06) earnings per share for the quarter, topping analysts' consensus estimates of ($0.14) by $0.08. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business had revenue of $63.87 million for the quarter, compared to analysts' expectations of $62.41 million. During the same period in the prior year, the firm earned ($0.05) EPS. The business's quarterly revenue was up 51.3% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on APLD. Cantor Fitzgerald dropped their price objective on shares of Applied Digital from $15.00 to $14.00 and set an "overweight" rating on the stock in a report on Wednesday. Craig Hallum lifted their price target on Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a report on Thursday, October 10th. HC Wainwright increased their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Wednesday. Lake Street Capital lifted their target price on Applied Digital from $7.00 to $11.00 and gave the company a "buy" rating in a research note on Thursday, October 10th. Finally, Roth Mkm reiterated a "buy" rating and set a $10.00 price target on shares of Applied Digital in a research report on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $11.29.

Insider Buying and Selling

In other news, CEO Wes Cummins sold 200,000 shares of the firm's stock in a transaction dated Wednesday, November 27th. The shares were 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. This trade represents a 4.91 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Richard N. Nottenburg sold 19,369 shares of the business's stock in a transaction that occurred on Thursday, November 7th. The stock was 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 owns 384,317 shares in the company, valued at $2,886,220.67. The trade was a 4.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 269,369 shares of company stock valued at $2,445,461 over the last quarter. Corporate insiders own 11.81% of the company's stock.

Institutional Trading of Applied Digital

A number of large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP lifted its position in shares of 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 acquiring an additional 3,040 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of Applied Digital by 14.4% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company's stock worth $355,000 after acquiring an additional 5,423 shares during the last quarter. FMR LLC raised its position in shares of Applied Digital by 99.1% during the third quarter. FMR LLC now owns 13,071 shares of the company's stock worth $108,000 after purchasing an additional 6,507 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in shares of Applied Digital during the third quarter valued at $59,000. Finally, Victory Capital Management Inc. boosted its position in shares of Applied Digital by 72.5% in the 3rd quarter. Victory Capital Management Inc. now owns 19,535 shares of the company's stock valued at $161,000 after purchasing an additional 8,212 shares during the period. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Price Performance

The stock has a 50 day moving average of $8.79 and a two-hundred day moving average of $6.96. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a market cap of $1.90 billion, a PE ratio of -7.68 and a beta of 4.78.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.