Applied Digital (NASDAQ:APLD) Posts Earnings Results, Hits Expectations

Key Points

• Applied Digital reported earnings of ($0.12) per share for the quarter, matching analysts' expectations, while revenue increased by 41.3% year-over-year to $38.01 million, although it fell short of a consensus estimate of $42.86 million.
• The company's negative net margin stands at 107.22% and it has a high debt-to-equity ratio of 1.56, indicating significant financial risk.
• Analysts generally maintain a positive outlook on the stock, with an average price target of $14.18 and twelve analysts rating it as a buy.

Applied Digital (NASDAQ:APLD - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.12) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.12), Zacks reports. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 54.03%. The business had revenue of $38.01 million during the quarter, compared to the consensus estimate of $42.86 million. During the same quarter last year, the company earned ($0.14) earnings per share. The business's quarterly revenue was up 41.3% compared to the same quarter last year.

Applied Digital Price Performance

Applied Digital stock traded down $0.35 during midday trading on Friday, hitting $12.79. The company's stock had a trading volume of 34,262,277 shares, compared to its average volume of 38,523,352. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 1.56. The stock's 50-day moving average price is $10.39 and its 200-day moving average price is $7.98. Applied Digital has a 12 month low of $3.01 and a 12 month high of $15.42. The company has a market capitalization of $2.88 billion, a PE ratio of -11.73 and a beta of 6.04.

Insider Buying and Selling

In other Applied Digital news, Director Rachel H. Lee sold 24,212 shares of the business's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the sale, the director directly owned 83,613 shares in the company, valued at approximately $585,291. The trade was a 22.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of APLD. NewEdge Advisors LLC raised its holdings in Applied Digital by 239.1% during the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after buying an additional 23,457 shares during the period. AQR Capital Management LLC raised its holdings in Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after buying an additional 8,692 shares during the period. Strs Ohio acquired a new position in shares of Applied Digital in the 1st quarter valued at about $71,000. Finally, Geneos Wealth Management Inc. lifted its position in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after purchasing an additional 3,542 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. B. Riley raised their price target on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. Cantor Fitzgerald reduced their price target on shares of Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a report on Tuesday, April 15th. Craig Hallum boosted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a report on Tuesday, June 3rd. Compass Point upgraded shares of Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 price objective on the stock in a research note on Friday, July 25th. Finally, Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday. Twelve research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $14.18.

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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