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

Applied Digital Co. (NASDAQ:APLD)’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.