Applied Digital (NASDAQ:APLD) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Applied Digital to “strong sell” from “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $68.15.
• Applied Digital reported a quarterly loss of $0.39 per share, missing the $0.09 consensus estimate, despite revenue surging 406.3% year over year to $240.35 million.
• The stock opened at $27.44 and remains highly volatile, with a beta of 5.75; director Richard N. Nottenburg also sold 75,000 shares at an average price of $31.15.

Applied Digital (NASDAQ:APLD - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Wednesday,Zacks.com reports.

Several other analysts also recently weighed in on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Needham & Company LLC reiterated a "buy" rating and issued a $83.00 price target on shares of Applied Digital in a report on Tuesday, July 28th. Citizens Jmp upped their target price on Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a report on Thursday, May 21st. B. Riley Financial reiterated a "buy" rating and set a $75.00 target price (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Finally, Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Trading Up 2.1%

Applied Digital stock opened at $27.44 on Wednesday. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The firm's fifty day moving average price is $31.29 and its 200-day moving average price is $33.42. The stock has a market cap of $8.00 billion, a P/E ratio of -30.83 and a beta of 5.75. Applied Digital has a fifty-two week low of $13.16 and a fifty-two week high of $50.72.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The company had revenue of $240.35 million during the quarter, compared to analysts' expectations of $96.85 million. During the same period in the prior year, the business earned ($0.24) earnings per share. The company's revenue for the quarter was up 406.3% compared to the same quarter last year. Equities research analysts forecast that Applied Digital will post -1.09 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 75,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares of the company's stock, valued at $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 9.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in APLD. Activest Wealth Management purchased a new stake in Applied Digital in the 4th quarter worth approximately $25,000. Ameriflex Group Inc. purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. McMillan Office Inc. purchased a new position in Applied Digital during the fourth quarter valued at approximately $25,000. Larson Financial Group LLC boosted its position in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after purchasing an additional 1,129 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new position in shares of Applied Digital in the second quarter worth approximately $26,000. Institutional investors own 65.67% of the company's stock.

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.

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