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

Applied Digital Corporation (NASDAQ:APLD) gapped up before the market opened on Monday . The stock had previously closed at $25.79, but opened at $27.31. Applied Digital shares last traded at $28.0730, with a volume of 4,390,325 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have commented on APLD. Needham & Company LLC raised their price objective on shares of Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Compass Point restated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Craig Hallum lifted their price target on Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research note on Tuesday, June 9th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a report on Friday, April 24th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital currently has a consensus rating of “Moderate Buy” and an average price target of $70.56.

Applied Digital Trading Up 7.9%

The company has a market cap of $8.59 billion, a P/E ratio of -40.61 and a beta of 5.67. The stock’s 50 day moving average is $39.75 and its 200-day moving average is $34.54. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Insider Activity

In related news, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company’s stock, valued at $6,466,367.82. This trade represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last ninety days. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several institutional investors have recently added to or reduced their stakes in APLD. Newbridge Financial Services Group Inc. grew its position in Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after purchasing an additional 300 shares during the period. Concurrent Investment Advisors LLC raised its stake in Applied Digital by 1.5% during the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock valued at $523,000 after buying an additional 318 shares during the last quarter. Brookstone Capital Management lifted its holdings in shares of Applied Digital by 3.6% during the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock valued at $227,000 after buying an additional 321 shares during the period. Independent Advisor Alliance lifted its holdings in shares of Applied Digital by 4.6% during the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after buying an additional 407 shares during the period. Finally, GAMMA Investing LLC boosted its stake in shares of Applied Digital by 28.5% in the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock worth $78,000 after buying an additional 464 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.