Applied Digital (NASDAQ:APLD) Shares Gap Up After Strong Earnings

Applied Digital Co. (NASDAQ:APLD) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $7.77, but opened at $9.53. Applied Digital shares last traded at $9.13, with a volume of 27,304,694 shares.

The company reported ($0.06) EPS 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 the consensus estimate of $62.41 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The firm’s revenue was up 51.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.05) EPS.

Wall Street Analysts Forecast Growth

APLD has been the subject of several analyst reports. HC Wainwright upped their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday. Lake Street Capital increased their target price on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Roth Mkm reissued a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research note on Thursday, October 10th. Cantor Fitzgerald cut their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Wednesday. Seven analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital has an average rating of “Buy” and an average price target of $11.29.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 19,369 shares of the stock in a transaction 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 sale, the director now owns 384,317 shares in the company, valued at approximately $2,886,220.67. This represents a 4.80 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the sale, 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 disclosure for this sale can be found here. In the last 90 days, insiders have sold 269,369 shares of company stock worth $2,445,461. 11.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Hood River Capital Management LLC raised its position in shares of Applied Digital by 8.7% in the 2nd quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock worth $57,098,000 after buying an additional 771,699 shares during the period. Geode Capital Management LLC raised its position in Applied Digital by 48.7% in the third quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock valued at $25,258,000 after purchasing an additional 1,002,862 shares during the period. State Street Corp raised its position in Applied Digital by 14.0% in the third quarter. State Street Corp now owns 2,337,267 shares of the company’s stock valued at $19,282,000 after purchasing an additional 286,852 shares during the period. Royce & Associates LP raised its position in Applied Digital by 1.4% in the third quarter. Royce & Associates LP now owns 1,132,140 shares of the company’s stock valued at $9,340,000 after purchasing an additional 15,763 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in Applied Digital by 36.5% in the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock valued at $7,419,000 after purchasing an additional 240,554 shares during the period. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Stock Performance

The firm has a 50-day simple moving average of $8.77 and a 200 day simple moving average of $6.95. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

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.