Applied Digital Corporation (NASDAQ:APLD) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Applied Digital Corporation has been rated a "Moderate Buy" by thirteen brokerages, with one analyst issuing a sell recommendation and a strong buy from another, reflecting mixed sentiment in the market.
• The company's average twelve-month target price is $22.10, and stock performance has shown significant movement, reaching a low of $3.31 and a high of $40.20 in the past year.
• In recent transactions, CEO Wes Cummins sold 400,000 shares of company stock, indicating notable insider selling activity after a significant run-up in stock price.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the thirteen ratings firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eleven have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $22.10.

A number of equities research analysts have recently commented on the stock. Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a report on Thursday, October 9th. HC Wainwright upped their target price on shares of Applied Digital from $20.00 to $40.00 and gave the company a "buy" rating in a report on Friday, October 10th. Lake Street Capital upped their target price on shares of Applied Digital from $18.00 to $37.00 and gave the company a "buy" rating in a report on Friday, October 10th. Craig Hallum increased their price target on shares of Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a report on Monday, August 18th. Finally, Needham & Company LLC increased their price target on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, July 31st.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $305,200.00. Following the completion of the transaction, the director directly owned 297,987 shares of the company's stock, valued at $4,547,281.62. This represents a 6.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Wes Cummins sold 400,000 shares of the stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the transaction, the chief executive officer directly owned 2,659,379 shares of the company's stock, valued at $40,582,123.54. This represents a 13.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 506,250 shares of company stock valued at $7,713,675 over the last ninety days. Corporate insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hood River Capital Management LLC grew its position in Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock worth $220,120,000 after buying an additional 592,314 shares during the period. Vanguard Group Inc. grew its position in Applied Digital by 5.7% during the first quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock worth $75,819,000 after buying an additional 730,978 shares during the period. Situational Awareness LP grew its position in Applied Digital by 63.3% during the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after buying an additional 2,556,200 shares during the period. BNP Paribas Financial Markets grew its position in Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after buying an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Applied Digital by 24.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock worth $26,799,000 after buying an additional 514,896 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Stock Performance

NASDAQ APLD opened at $34.24 on Monday. The company has a fifty day moving average of $21.05 and a two-hundred day moving average of $12.92. Applied Digital has a 1 year low of $3.31 and a 1 year high of $40.20. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. The company has a market capitalization of $9.58 billion, a PE ratio of -30.30 and a beta of 6.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts' consensus estimates of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $38.01 million during the quarter, compared to analysts' expectations of $52.25 million. During the same period in the prior year, the company earned ($0.15) earnings per share. The business's revenue was up 84.3% compared to the same quarter last year. As a group, analysts expect that Applied Digital will post -0.96 earnings per share for the current year.

Applied Digital Company Profile

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.

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