Applied Digital Corporation (NASDAQ:APLD) Receives Consensus Rating of "Buy" from Analysts

Key Points

• Applied Digital has a consensus analyst rating of “Buy” from 16 brokerages, with an average 12-month price target of about $59.11. The rating mix includes 11 buys and 3 strong buys, though there are also 1 sell and 1 hold rating.
• The stock recently traded at $47.94, near its 52-week high of $50.72, and the company now has a market value of about $13.7 billion. It also shows high volatility, with a beta of 5.69.
• Applied Digital’s latest earnings missed expectations on EPS but beat on revenue, which rose 139.3% year over year to $108.55 million. Insider selling was also noted, while institutional investors continue to hold a large majority of the shares.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) has earned a consensus rating of "Buy" from the sixteen brokerages that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, one has given a hold rating, eleven have given a buy rating and three have issued a strong buy rating on the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $59.1111.

A number of equities analysts have commented on APLD shares. Roth Mkm reiterated a "buy" rating and issued a $65.00 target price on shares of Applied Digital in a report on Thursday, April 23rd. Needham & Company LLC boosted their target price on shares of Applied Digital from $51.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Compass Point reiterated a "buy" rating and issued a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th.

Applied Digital Stock Performance

APLD stock opened at $47.94 on Tuesday. The company has a market capitalization of $13.70 billion, a P/E ratio of -64.78 and a beta of 5.69. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The business has a 50-day moving average price of $34.82 and a 200 day moving average price of $31.55. Applied Digital has a 1-year low of $8.03 and a 1-year high of $50.72.

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

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the company's stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director 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 transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the company's stock in a transaction dated Monday, April 27th. The shares were 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 approximately $6,466,367.82. This trade represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last quarter. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently modified their holdings of the stock. Vestor Capital LLC acquired a new position in shares of Applied Digital during the first quarter valued at about $98,000. Western Wealth Management LLC acquired a new position in shares of Applied Digital during the first quarter valued at about $87,000. Janus Henderson Group PLC increased its holdings in shares of Applied Digital by 318.5% during the first 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 in the last quarter. Amundi increased its holdings in shares of Applied Digital by 61.8% during the first quarter. Amundi now owns 31,327 shares of the company's stock valued at $744,000 after acquiring an additional 11,968 shares in the last quarter. Finally, Situational Awareness LP increased its holdings in shares of Applied Digital by 18.9% during the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after acquiring an additional 2,139,378 shares in the last quarter. Institutional investors and hedge funds 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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