Applied Digital (NASDAQ:APLD) Earns Buy Rating from Analysts at Compass Point

Key Points

• Compass Point analysts have initiated coverage of Applied Digital (NASDAQ: APLD) with a "buy" rating, reflecting growing confidence in the company's prospects.
• Several other firms, including B. Riley and Craig Hallum, raised their price targets on APLD significantly, with a consensus average target price of $15.64.
• Applied Digital's recent quarterly earnings reported a revenue of $38.01 million, representing a 41.3% increase year-over-year, although it fell short of analyst expectations.

Equities research analysts at Compass Point started coverage on shares of Applied Digital (NASDAQ:APLD - Get Free Report) in a report released on Monday. The firm set a "buy" rating on the stock.

Several other research analysts have also commented on APLD. B. Riley lifted their target price on Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. Craig Hallum lifted their target price on Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a research report on Monday, August 18th. HC Wainwright raised their price target on Applied Digital from $15.00 to $20.00 and gave the stock a "buy" rating in a report on Monday, August 25th. Needham & Company LLC raised their price target on Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, JMP Securities raised their price target on Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a report on Tuesday, June 3rd. One analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $15.64.

Applied Digital Price Performance

Shares of NASDAQ APLD opened at $18.68 on Monday. Applied Digital has a fifty-two week low of $3.31 and a fifty-two week high of $18.71. The business has a 50 day moving average price of $13.44 and a two-hundred day moving average price of $9.47. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36. The firm has a market cap of $4.89 billion, a PE ratio of -17.14 and a beta of 6.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.12). Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%.The firm had revenue of $38.01 million during the quarter, compared to analyst estimates of $42.86 million. During the same quarter last year, the firm earned ($0.14) EPS. Applied Digital's quarterly revenue was up 41.3% on a year-over-year basis. Sell-side analysts expect that Applied Digital will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the company's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $1,144,500.00. Following the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. This represents a 27.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $305,200.00. Following the completion of the sale, the director owned 297,987 shares of the company's stock, valued at approximately $4,547,281.62. The trade was a 6.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 506,250 shares of company stock valued at $7,713,675 over the last three months. Company insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Hood River Capital Management LLC grew its stake in shares of Applied Digital by 2.8% in the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after buying an additional 592,314 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Applied Digital by 5.7% in the first quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock worth $75,819,000 after purchasing an additional 730,978 shares in the last quarter. Situational Awareness LP boosted its holdings in Applied Digital by 63.3% in the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock worth $66,379,000 after purchasing an additional 2,556,200 shares in the last quarter. BNP Paribas Financial Markets boosted its holdings in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Applied Digital by 24.0% in 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 purchasing an additional 514,896 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

About Applied Digital

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.