Applied Digital (NASDAQ:APLD) Stock Price Up 3.7% - Here's What Happened

Shares of Applied Digital Co. (NASDAQ:APLD) experienced a surge of 3.7% in mid-day trading on Thursday. The stock peaked at $7.87 before closing at $7.84. During the day, a total of 5,675,385 shares changed hands, marking a notable decline of 75% compared to the average trading volume of 23,017,307 shares. Prior to this uptick, the shares had ended the previous trading session at $7.56.

Recent Analyst Ratings

Brokerages have published varied reports regarding the outlook for Applied Digital. Recently, HC Wainwright raised their price target for APLD from $10.00 to $12.00, maintaining a "buy" rating. In another report, Cantor Fitzgerald reduced their price target from $15.00 to $14.00 but retained an "overweight" rating. Needham & Company reiterated their "buy" rating with a price target of $11.00. Additionally, Northland Securities increased their price goal from $12.00 to $20.00, giving the company an "outperform" rating. Furthermore, Compass Point initiated coverage with a "buy" rating and a target price of $10.00. According to MarketBeat.com, a total of nine research analysts currently rate the stock as a buy, and the average target price sits at $12.11.

Stock Performance Overview

As of now, Applied Digital's 50-day moving average price is $8.47, while the two-hundred day moving average price is $7.24. The company has a market capitalization of $1.76 billion, with a price-to-earnings ratio of -4.57 and a beta of 4.77. Applied Digital's debt-to-equity ratio stands at 1.22, and both the quick ratio and current ratio are at 0.77.

Earnings Report Highlights

On January 14, Applied Digital reported its earnings results. The company had an earnings per share (EPS) of ($0.06), exceeding analysts' estimates of ($0.14) by $0.08. The company posted a negative net margin of 127.86% and a negative return on equity of 117.67%. Revenue for the period reached $63.87 million, surpassing anticipated revenue of $62.41 million, and reflecting a 51.3% year-over-year increase. Analysts expect that for the current fiscal year, Applied Digital will report an EPS of -0.96.

Insider Transactions

In recent insider activity, Director Richard N. Nottenburg sold 20,000 shares on January 17 at an average price of $8.85, totaling $177,000. Post-sale, Nottenburg owns approximately 342,923 shares valued at about $3,034,868. Meanwhile, CEO Wes Cummins sold 200,000 shares on November 27 at an average price of $9.20, amounting to $1,840,000. After this sale, Cummins retains ownership of around 3,875,955 shares valued at $35,658,786. Overall, insiders sold 270,000 shares within the last ninety days, which accounts for 11.81% of the company's stock ownership.

Institutional Investor Activity

Recent activities from institutional investors reveal a trend of increasing stakes in Applied Digital. Legal & General Group Plc raised its shareholding by 16.9%, now owning 167,660 shares valued at approximately $1,281,000 after acquiring an additional 24,195 shares. Invesco Ltd. also upped its stake by 16.5%, reaching 109,456 shares worth $836,000. Cerity Partners LLC significantly increased its holdings by 199.0%, now possessing 81,833 shares worth $626,000. Additionally, Russell Investments Group Ltd. raised its stake by 19.3% with 94,788 shares valued at $724,000. Institutional investors combined own approximately 65.67% of the stock of Applied Digital.

About Applied Digital

Applied Digital Corporation is focused on designing, developing, and operating data centers across North America. The company provides vital digital infrastructure solutions, primarily catering to the high-performance computing industry. Moreover, Applied Digital offers services including artificial intelligence cloud services, HPC (High Performance Computing) data center hosting, and cryptocurrency data center hosting.

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