Applied Digital (NASDAQ:APLD) Given Sell (D-) Rating at Weiss Ratings

Key Points

• Applied Digital has received a "sell (D-)" rating from Weiss Ratings, indicating potential concerns regarding the company's financial health.
• Despite the sell rating, other analysts have issued more positive outlooks, with price targets ranging from $16 to $40 and ratings that include multiple "buy" and "outperform" assessments.
• The company reported a quarterly EPS of ($0.03), beating estimates, although its revenue of $38.01 million fell short of the anticipated $52.25 million.

Applied Digital (NASDAQ:APLD - Get Free Report)'s stock had its "sell (d-)" rating reiterated by research analysts at Weiss Ratings in a research report issued to clients and investors on Friday,Weiss Ratings reports.

A number of other analysts also recently issued reports on the stock. HC Wainwright boosted their price objective 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. Needham & Company LLC boosted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Northland Securities raised their target price on shares of Applied Digital to $40.00 and gave the company an "outperform" rating in a report on Friday, October 10th. Craig Hallum raised their target price on shares of Applied Digital to $39.00 and gave the company a "buy" rating in a report on Thursday. Finally, Citigroup reissued an "outperform" rating on shares of Applied Digital in a report on Thursday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $23.70.

Applied Digital Stock Performance

NASDAQ:APLD traded up $0.05 during mid-day trading on Friday, reaching $33.43. 29,561,953 shares of the company's stock were exchanged, compared to its average volume of 36,599,176. Applied Digital has a one year low of $3.31 and a one year high of $40.20. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The business's fifty day simple moving average is $22.53 and its two-hundred day simple moving average is $13.59. The firm has a market capitalization of $9.35 billion, a PE ratio of -29.58 and a beta of 6.77.

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

Insider Activity at Applied Digital

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of Applied Digital stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the sale, the chief financial officer directly owned 201,800 shares of the company's stock, valued at approximately $3,079,468. The trade was a 27.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $305,200.00. Following the sale, the director directly owned 297,987 shares in the company, valued at $4,547,281.62. This trade represents a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 506,250 shares of company stock valued at $7,713,675. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC grew its holdings in Applied Digital by 51.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,306 shares of the company's stock worth $53,000 after acquiring an additional 787 shares during the last quarter. Evolution Wealth Management Inc. grew its holdings in Applied Digital by 101.8% during the 3rd quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company's stock worth $37,000 after acquiring an additional 807 shares during the last quarter. Flagship Harbor Advisors LLC grew its holdings in Applied Digital by 6.0% during the 2nd quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock worth $160,000 after acquiring an additional 900 shares during the last quarter. CoreCap Advisors LLC grew its holdings in Applied Digital by 124.9% during the 3rd quarter. CoreCap Advisors LLC now owns 1,804 shares of the company's stock worth $41,000 after acquiring an additional 1,002 shares during the last quarter. Finally, Quantinno Capital Management LP grew its holdings in Applied Digital by 1.6% during the 2nd quarter. Quantinno Capital Management LP now owns 68,417 shares of the company's stock worth $689,000 after acquiring an additional 1,063 shares during the last quarter. 65.67% of the stock is owned by institutional investors.

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.

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