Applied Digital (NASDAQ:APLD) Posts Quarterly 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) announced its earnings results on Wednesday. The company reported ($0.12) EPS for the quarter, meeting 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 50.03%. The business had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. During the same period in the prior year, the company earned ($0.14) earnings per share. The firm's revenue was up 41.3% on a year-over-year basis.

Applied Digital Price Performance

APLD stock traded up $0.62 during trading on Monday, hitting $13.14. 7,985,216 shares of the company's stock traded hands, compared to its average volume of 38,423,359. Applied Digital has a 52 week low of $3.01 and a 52 week high of $15.42. The stock has a market capitalization of $3.44 billion, a price-to-earnings ratio of -12.06 and a beta of 6.17. The business has a fifty day simple moving average of $10.49 and a 200 day simple moving average of $8.00. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.77 and a current ratio of 0.77.

Insider Activity at Applied Digital

In other Applied Digital news, Director Rachel H. Lee sold 24,212 shares of Applied Digital stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the transaction, the director directly owned 83,613 shares of the company's stock, valued at $585,291. This trade represents a 22.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 11.81% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently made changes to their positions in APLD. Geneos Wealth Management Inc. grew its stake in shares of Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after buying an additional 3,542 shares in the last quarter. Strs Ohio purchased a new position in shares of Applied Digital in the 1st quarter worth $71,000. AQR Capital Management LLC grew its stake in shares of Applied Digital by 84.8% in 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 in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in shares of Applied Digital by 239.1% in the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after acquiring an additional 23,457 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Citigroup reissued an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. Craig Hallum increased their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research note on Tuesday, June 3rd. Needham & Company LLC increased their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research note on Thursday. Lake Street Capital increased their price objective on shares of Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, JMP Securities increased their price objective on shares of Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a research note on Tuesday, June 3rd. Twelve analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Applied Digital has an average rating of "Buy" and a consensus target price 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.