Applied Digital (NASDAQ:APLD) Shares Up 6.2% – Should You Buy?

Applied Digital Corporation (NASDAQ:APLD)’s share price was up 6.2% on Friday . The stock traded as high as $37.21 and last traded at $36.91. Approximately 16,954,719 shares changed hands during trading, a decline of 59% from the average daily volume of 40,909,945 shares. The stock had previously closed at $34.74.

Analyst Upgrades and Downgrades

APLD has been the topic of a number of research analyst reports. Wall Street Zen raised Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a report on Tuesday, January 6th. Arete Research started coverage on shares of Applied Digital in a research note on Wednesday, January 7th. They set a “buy” rating on the stock. Lake Street Capital reaffirmed a “buy” rating and set a $45.00 price objective on shares of Applied Digital in a report on Tuesday, December 30th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $33.27.

Applied Digital Price Performance

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 company has a 50-day moving average of $28.48 and a 200-day moving average of $23.37. The stock has a market capitalization of $10.82 billion, a price-to-earnings ratio of -71.67 and a beta of 6.89.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, January 7th. The company reported ($0.11) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The company had revenue of $126.59 million for the quarter, compared to analyst estimates of $82.22 million. During the same quarter last year, the company posted ($0.06) EPS. Applied Digital’s quarterly revenue was up 250.1% compared to the same quarter last year. As a group, equities research analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Chuck Hastings sold 25,000 shares of the stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $34.27, for a total transaction of $856,750.00. Following the completion of the sale, the director owned 426,612 shares of the company’s stock, valued at approximately $14,619,993.24. This represents a 5.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the transaction, the director directly owned 69,256 shares in the company, valued at approximately $2,444,736.80. This trade represents a 38.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 368,053 shares of company stock worth $13,251,886 in the last quarter. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its holdings in Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock worth $106,000 after purchasing an additional 8,692 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Applied Digital by 239.1% during the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after purchasing an additional 23,457 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock worth $37,000 after buying an additional 3,542 shares during the last quarter. Strs Ohio acquired a new position in shares of Applied Digital in the 1st quarter valued at about $71,000. Finally, ORG Wealth Partners LLC bought a new stake in shares of Applied Digital during the 2nd quarter valued at about $66,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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.