Applied Digital (NASDAQ:APLD) Shares Up 15.5% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD) shares traded up 15.5% during trading on Tuesday . The stock traded as high as $23.79 and last traded at $23.74. 23,764,411 shares were traded during trading, a decline of 13% from the average session volume of 27,222,533 shares. The stock had previously closed at $20.55.

Applied Digital News Summary

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Broad market risk-on trade after hopes of a potential ceasefire in Iran and easing oil prices lifted several tech and infrastructure names, helping Applied Digital’s rally. Flex, Benchmark, Planet Labs, Applied Digital, and Dell Shares Are Soaring, What You Need To Know
• Positive Sentiment: Investors accumulated APLD ahead of the company’s fiscal Q3 earnings, contributing to a large intraday jump (coverage noted a 15%+ pop ahead of the report). Applied Digital (APLD) Soars 15.55% Ahead of Wednesday Earnings
• Positive Sentiment: Applied Digital amended North Dakota data-center leases with CoreWeave — a development investors view as reducing execution/occupancy uncertainty for a key customer relationship. Applied Digital amends N.D. data center leases with CoreWeave
• Neutral Sentiment: Company profile and broader reporting on APLD appeared across major outlets, keeping retail/institutional focus on the stock into earnings. Applied Digital Corporation
• Neutral Sentiment: APLD is scheduled to report fiscal Q3 results next week (April 8), which is central to near-term price direction — many participants are positioning ahead of that print. Applied Digital (APLD) Projected to Post Earnings on Wednesday
• Negative Sentiment: Analysts and previews (Zacks/other outlets) argue Applied Digital lacks the factors typically needed for an earnings surprise and project negative EPS, which raises downside risk if results disappoint. Will Applied Digital Corporation (APLD) Report Negative Earnings Next Week? What You Should Know
• Negative Sentiment: Investor caution remains over the company’s large power build / $2+ billion debt-financed investments; commentators call the upcoming earnings a “make-or-break” event given the added leverage and recent share volatility. Dear Applied Digital Investors: April 8 Could Be the Make or Break Moment

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on APLD. Arete Research began coverage on Applied Digital in a research note on Wednesday, January 7th. They issued a “buy” rating for the company. Needham & Company LLC restated a “buy” rating and set a $41.00 target price on shares of Applied Digital in a research note on Thursday, January 8th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Texas Capital upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. Finally, Northland Securities set a $56.00 price target on shares of Applied Digital in a report on Wednesday, January 28th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Applied Digital currently has a consensus rating of “Buy” and a consensus price target of $37.00.

Applied Digital Stock Up 3.2%

The firm’s 50-day moving average price is $30.54 and its two-hundred day moving average price is $29.27. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. The firm has a market cap of $6.85 billion, a PE ratio of -45.35 and a beta of 7.20.

Insider Activity at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the transaction, the director owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. This trade represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $38.54, for a total value of $385,400.00. Following the sale, the director owned 200,859 shares in the company, valued at $7,741,105.86. This trade represents a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,593 shares of company stock valued at $9,003,278 over the last quarter. 9.50% of the stock is owned by insiders.

Institutional Trading of Applied Digital

A number of large investors have recently made changes to their positions in APLD. Vanguard Group Inc. grew its stake in Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after buying an additional 6,445,908 shares during the last quarter. Hood River Capital Management LLC lifted its stake in Applied Digital by 2.8% in the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock valued at $220,120,000 after buying an additional 592,314 shares during the last quarter. Situational Awareness LP boosted its holdings in shares of Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after acquiring an additional 5,274,905 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after acquiring an additional 304,228 shares during the period. Finally, Value Aligned Research Advisors LLC purchased a new position in shares of Applied Digital during the fourth quarter worth approximately $138,380,000. 65.67% of the stock is owned by institutional investors and hedge funds.

About Applied Digital

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.