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

Applied Digital Co. (NASDAQ:APLD)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $5.26, but opened at $5.74. Applied Digital shares last traded at $5.53, with a volume of 2,011,535 shares.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Compass Point started coverage on shares of Applied Digital in a report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target for the company. Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a report on Monday, February 24th. Northland Securities lifted their price target on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. HC Wainwright raised their target price on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, January 15th. Finally, Cantor Fitzgerald cut their price target on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 15th. Nine research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $12.11.

Applied Digital Trading Down 7.1 %

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The company’s 50-day moving average is $7.25 and its 200 day moving average is $7.95. The company has a market cap of $1.14 billion, a price-to-earnings ratio of -2.97 and a beta of 5.18.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.08. The firm had revenue of $63.87 million during the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. Applied Digital’s revenue for the quarter was up 51.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.05) EPS. Research analysts predict that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the transaction, the director now directly owns 342,923 shares in the company, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Lbmc Investment Advisors LLC acquired a new stake in Applied Digital during the 1st quarter worth $67,000. Fiduciary Alliance LLC acquired a new position in Applied Digital during the first quarter worth about $267,000. Rhumbline Advisers grew its stake in Applied Digital by 7.8% during the 1st quarter. Rhumbline Advisers now owns 279,191 shares of the company’s stock valued at $1,569,000 after acquiring an additional 20,299 shares in the last quarter. GAMMA Investing LLC grew its stake in Applied Digital by 1,237.4% during the 1st quarter. GAMMA Investing LLC now owns 9,576 shares of the company’s stock valued at $540,000 after acquiring an additional 8,860 shares in the last quarter. Finally, California State Teachers Retirement System raised its holdings in Applied Digital by 65.6% in the 4th quarter. California State Teachers Retirement System now owns 162,561 shares of the company’s stock valued at $1,242,000 after acquiring an additional 64,425 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

About Applied Digital

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.