Applied Digital (NASDAQ:APLD) Releases Earnings Results, Misses Estimates By $0.30 EPS

Key Points

• Applied Digital reported a quarterly loss of $0.39 per share, missing the consensus estimate of a $0.09 loss by $0.30. The company also posted a negative 52.84% net margin and negative 15.91% return on equity.
• Shares fell 3.0% to $26.38, with Applied Digital valued at approximately $7.54 billion. The stock has traded between $9.79 and $50.72 over the past year.
• Despite the earnings miss, analysts maintain a generally positive outlook: Applied Digital has a “Moderate Buy” consensus rating and a $67.15 average price target, while institutional investors own 65.67% of the company.

Applied Digital (NASDAQ:APLD - Get Free Report) announced its earnings results on Monday. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30), Zacks reports. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.

Applied Digital Trading Down 3.0%

Shares of Applied Digital stock traded down $0.81 during trading on Monday, hitting $26.38. 22,422,928 shares of the company were exchanged, compared to its average volume of 24,385,459. The firm has a market capitalization of $7.54 billion, a P/E ratio of -35.65 and a beta of 5.67. Applied Digital has a 1-year low of $9.79 and a 1-year high of $50.72. The firm's fifty day moving average price is $38.80 and its 200 day moving average price is $34.57. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on APLD. Lake Street Capital lifted their price objective on Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Northland Securities set a $82.00 target price on Applied Digital and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Citizens Jmp raised their target price on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a research note on Thursday, May 21st. Citigroup reissued a "market outperform" rating on shares of Applied Digital in a research note on Tuesday, June 9th. Finally, Morgan Stanley began coverage on Applied Digital in a report on Thursday. They issued a "buy" rating and a $36.50 price target on the stock. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Applied Digital presently has an average rating of "Moderate Buy" and a consensus price target of $67.15.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several large investors have recently bought and sold shares of the company. Mcguire Capital Advisors Inc. acquired a new stake in Applied Digital in the fourth quarter worth $27,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of Applied Digital by 104.8% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 4,209,702 shares of the company's stock valued at $103,222,000 after buying an additional 2,154,213 shares during the period. Invesco Ltd. grew its holdings in shares of Applied Digital by 9.3% in the 4th quarter. Invesco Ltd. now owns 178,565 shares of the company's stock valued at $4,378,000 after buying an additional 15,266 shares during the period. CrossGen Wealth LLC bought a new stake in shares of Applied Digital in the 4th quarter valued at $43,000. Finally, Strive Financial Group LLC bought a new stake in shares of Applied Digital in the 4th quarter valued at $31,000. Institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.