Applied Digital Corporation (NASDAQ:APLD) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts give Applied Digital an average rating of Moderate Buy from 15 analysts (11 buys, 2 sells, 2 strong buys) with a 12‑month average price target of $44.33.
• The latest quarter showed revenue of $108.55M (up 139% YoY) beating estimates, but EPS missed at ($0.36) versus ($0.13) expected, leaving the company unprofitable with negative net margin and ROE.
• Company insiders have been net sellers, offloading 35,000 shares worth about $1.18M in the past 90 days (notable director sales at ~$34.59–$34.98), though insiders still own roughly 9.5% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) has received an average rating of "Moderate Buy" from the fifteen analysts that are currently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $44.3333.

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Northland Securities set a $56.00 price target on shares of Applied Digital in a research report on Wednesday, January 28th. Roth Mkm restated a "buy" rating and issued a $65.00 price target on shares of Applied Digital in a research report on Thursday, April 23rd. Zacks Research downgraded shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Wednesday, April 8th. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a research report on Wednesday, January 28th.

Insider Transactions at Applied Digital

In related 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 sale, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the 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 completion of the sale, the director directly owned 184,859 shares in the company, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 35,000 shares of company stock worth $1,182,175. Insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

A number of large investors have recently modified their holdings of APLD. Noble Wealth Management PBC acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Albion Financial Group UT acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Activest Wealth Management acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Ameriflex Group Inc. acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Finally, McMillan Office Inc. acquired a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Institutional investors and hedge funds own 65.67% of the company's stock.

Applied Digital Trading Down 6.1%

APLD opened at $41.53 on Friday. The stock has a market capitalization of $11.87 billion, a PE ratio of -56.12 and a beta of 5.69. The firm's fifty day moving average price is $28.99 and its 200 day moving average price is $30.13. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. Applied Digital has a 12-month low of $5.13 and a 12-month high of $44.25.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted 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). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter in the previous year, the business posted ($0.08) earnings per share. The company's quarterly revenue was up 139.3% compared to the same quarter last year. As a group, research analysts expect that Applied Digital will post -0.52 EPS for the current fiscal year.

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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