Applied Digital (NASDAQ:APLD) Shares Gap Up – Should You Buy?

Applied Digital Co. (NASDAQ:APLD) shares gapped up prior to trading on Tuesday . The stock had previously closed at $7.97, but opened at $8.23. Applied Digital shares last traded at $7.90, with a volume of 1,790,467 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Craig Hallum raised 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. Lake Street Capital boosted their target price on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Friday, November 1st. B. Riley boosted their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a report on Friday, September 13th. Finally, Roth Mkm reaffirmed a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Seven investment analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and an average target price of $11.14.

Applied Digital Stock Down 4.1 %

The stock has a market cap of $1.61 billion, a PE ratio of -6.53 and a beta of 4.67. The business has a fifty day moving average of $8.48 and a 200-day moving average of $6.75. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.13. The business had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business’s revenue for the quarter was up 67.2% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.10) EPS. Equities research analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insider Buying and Selling

In other Applied Digital news, CEO Wes Cummins sold 200,000 shares of the stock in a transaction on 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 sale, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. This trade represents a 4.91 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction 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 completion of the transaction, the director now owns 208,506 shares in the company, valued at $1,670,133.06. This represents a 4.58 % decrease in their ownership of the stock. 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 three months. 11.81% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently added to or reduced their stakes in APLD. Headlands Technologies LLC grew its position in shares of Applied Digital by 381.8% in the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after buying an additional 6,933 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Applied Digital in the third quarter valued at approximately $59,000. Beacon Harbor Wealth Advisors Inc. acquired a new stake in Applied Digital in the third quarter valued at approximately $83,000. Wealth Enhancement Advisory Services LLC purchased a new position in Applied Digital in the third quarter worth $88,000. Finally, Chesapeake Capital Corp IL acquired a new position in shares of Applied Digital during the third quarter worth $94,000. 65.67% of the stock is currently owned by 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.