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

Applied Digital Co. (NASDAQ:APLD)’s share price gapped up before the market opened on Monday . The stock had previously closed at $13.86, but opened at $14.52. Applied Digital shares last traded at $14.02, with a volume of 21,503,318 shares.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. HC Wainwright raised their price objective on shares of Applied Digital from $7.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, June 3rd. Craig Hallum raised their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, June 3rd. Compass Point reaffirmed a “neutral” rating and set a $13.00 price objective (up previously from $10.00) on shares of Applied Digital in a report on Monday. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Tuesday, June 3rd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a report on Monday, June 2nd. One equities research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $12.73.

Applied Digital Stock Up 1.2%

The business’s fifty day simple moving average is $6.15 and its 200 day simple moving average is $7.53. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock has a market cap of $3.16 billion, a price-to-earnings ratio of -8.10 and a beta of 6.08.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Monday, April 14th. The company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.05). The business had revenue of $52.92 million for the quarter, compared to the consensus estimate of $62.91 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. During the same quarter last year, the firm earned ($0.24) EPS. Equities analysts forecast that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of the company’s stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the sale, the director now directly owns 83,613 shares of the company’s stock, valued at approximately $585,291. This represents a 22.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Wells Fargo & Company MN grew its stake in Applied Digital by 96.6% in the 4th quarter. Wells Fargo & Company MN now owns 119,963 shares of the company’s stock valued at $917,000 after buying an additional 58,943 shares during the last quarter. Vanguard Group Inc. boosted its stake in Applied Digital by 39.1% in the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company’s stock valued at $97,487,000 after purchasing an additional 3,587,619 shares during the period. Rhumbline Advisers boosted its stake in Applied Digital by 68.7% in the 4th quarter. Rhumbline Advisers now owns 258,892 shares of the company’s stock valued at $1,978,000 after purchasing an additional 105,428 shares during the period. Numerai GP LLC bought a new stake in Applied Digital in the 4th quarter valued at $790,000. Finally, Barclays PLC grew its position in shares of Applied Digital by 736.8% during the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after purchasing an additional 428,428 shares in the last quarter. Institutional investors and hedge funds 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.