Rothschild & Co Redburn Upgrades Applied Digital (NASDAQ:APLD) to "Hold"

Key Points

• Rothschild & Co Redburn upgraded Applied Digital to “Hold,” while overall analyst sentiment remains “Moderate Buy,” with a consensus price target of $62.79.
• Applied Digital reported quarterly revenue of $240.35 million, up 406.3% year over year, but its adjusted loss of $0.39 per share significantly missed estimates of a $0.09 loss.
• The stock opened at $28.19 and has traded between $19.00 and $50.72 over the past year; director Richard Nottenburg also sold 75,000 shares worth approximately $2.34 million.

Applied Digital (NASDAQ:APLD - Get Free Report) was upgraded by equities researchers at Rothschild & Co Redburn to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

Other equities research analysts also recently issued research reports about the company. Needham & Company LLC reaffirmed a "buy" rating and set a $83.00 target price on shares of Applied Digital in a report on Tuesday, July 28th. Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Wall Street Zen downgraded shares of Applied Digital from a "sell" rating to a "strong sell" rating in a report on Sunday, August 30th. Finally, Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an "outperform" rating in a research note on Wednesday, June 17th. Four analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $62.79.

Applied Digital Price Performance

NASDAQ APLD opened at $28.19 on Monday. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The stock's fifty day moving average price is $27.64 and its 200 day moving average price is $32.69. Applied Digital has a 1 year low of $19.00 and a 1 year high of $50.72. The company has a market cap of $8.22 billion, a price-to-earnings ratio of -31.67 and a beta of 5.72.

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

Insider Buying and Selling at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. FNY Investment Advisers LLC acquired a new stake in shares of Applied Digital in the second quarter worth approximately $37,000. Osbon Capital Management LLC purchased a new stake in shares of Applied Digital during the 4th quarter valued at approximately $28,000. Bartlett & CO. Wealth Management LLC lifted its stake in shares of Applied Digital by 244.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company's stock valued at $29,000 after purchasing an additional 855 shares during the last quarter. Ancora Advisors LLC acquired a new position in Applied Digital in the second quarter valued at about $56,000. Finally, Creative Financial Designs Inc. ADV lifted its holdings in shares of Applied Digital by 691.8% in the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company's stock worth $57,000 after acquiring an additional 1,342 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

About Applied Digital

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company's facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.

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