Applied Digital Corporation (NASDAQ:APLD) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Applied Digital has an average analyst rating of “Moderate Buy” from 16 analysts, with a consensus 12-month price target of about $70.56. The mix includes 11 buy ratings, 3 strong buys, and 2 sells.
• The stock was down 4.2% in Friday trading, opening at $39.22, even though it remains well above its 52-week low of $9.02 and below its high of $50.72. The company’s valuation and volatility remain elevated, with a negative P/E and a beta of 5.69.
• Applied Digital’s latest quarterly results were mixed: revenue beat estimates at $108.55 million and jumped 139.3% year over year, but EPS missed expectations at -$0.36. Insiders have also been selling shares recently, while institutional investors continue to hold a majority stake.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) have been given an average recommendation of "Moderate Buy" by the sixteen analysts that are covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, eleven have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $70.5556.

A number of brokerages recently weighed in on APLD. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research note on Friday, April 24th. Wall Street Zen cut Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Needham & Company LLC raised their target price on Applied Digital from $66.00 to $83.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Roth Mkm reaffirmed a "buy" rating and issued a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Finally, Citizens Jmp boosted their price target on Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a research report on Thursday, May 21st.

Applied Digital Stock Down 4.2%

Shares of APLD opened at $39.22 on Friday. The firm has a market cap of $11.21 billion, a P/E ratio of -53.00 and a beta of 5.69. Applied Digital has a 12 month low of $9.02 and a 12 month high of $50.72. The stock's 50 day moving average is $41.44 and its two-hundred day moving average is $33.92. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. Applied Digital's revenue was up 139.3% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.08) EPS. Analysts predict that Applied Digital will post -0.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. The trade was a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 35,000 shares of company stock valued at $1,182,175 in the last ninety days. Insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC boosted its stake in Applied Digital by 126.1% during the first quarter. Parallel Advisors LLC now owns 2,614 shares of the company's stock worth $62,000 after buying an additional 1,458 shares during the last quarter. Vestor Capital LLC acquired a new position in shares of Applied Digital during the 1st quarter valued at about $98,000. Western Wealth Management LLC acquired a new position in shares of Applied Digital during the 1st quarter valued at about $87,000. Janus Henderson Group PLC boosted its position in shares of Applied Digital by 318.5% during the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company's stock valued at $18,638,000 after acquiring an additional 597,548 shares during the last quarter. Finally, Amundi boosted its position in shares of Applied Digital by 61.8% during the 1st quarter. Amundi now owns 31,327 shares of the company's stock valued at $744,000 after acquiring an additional 11,968 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

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.

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