Applied Digital (NASDAQ:APLD) Shares Down 1.2% - What's Next?

Key Points

• Applied Digital shares fell 1.2% to $26.89 in Monday midday trading, with volume down 53% from the average session.
• Analysts remain broadly optimistic, assigning the stock a consensus “Moderate Buy” rating and an average price target of $68.15; targets range from $37.50 to $70.
• The company’s revenue surged 406.3% year over year to $240.35 million, but it posted an EPS loss of $0.39 versus the expected $0.09 loss and continues to report negative profitability metrics.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 1.2% on Monday . The stock traded as low as $26.06 and last traded at $26.89. Approximately 11,065,985 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 23,708,051 shares. The stock had previously closed at $27.21.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on APLD shares. Citizens Jmp boosted their target price on shares of Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a research note on Thursday, May 21st. Morgan Stanley raised their price target on shares of Applied Digital from $36.50 to $37.50 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Compass Point reissued a "buy" rating and issued a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Citigroup restated a "market outperform" rating on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Zacks Research raised Applied Digital from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Price Performance

The stock has a market capitalization of $7.84 billion, a P/E ratio of -30.21 and a beta of 5.75. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The company has a fifty day simple moving average of $32.78 and a two-hundred day simple moving average of $33.57.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The business had revenue of $240.35 million during the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm's revenue for the quarter was up 406.3% compared to the same quarter last year. During the same period last year, the business posted ($0.24) EPS. Sell-side analysts expect that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director directly owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 9.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Activest Wealth Management acquired a new stake in shares of Applied Digital during the fourth quarter worth $25,000. FNY Investment Advisers LLC bought a new stake in Applied Digital in the second quarter valued at about $37,000. Ameriflex Group Inc. acquired a new position in Applied Digital in the fourth quarter valued at about $25,000. McMillan Office Inc. acquired a new position in Applied Digital in the fourth quarter valued at about $25,000. Finally, Mcguire Capital Advisors Inc. bought a new position in Applied Digital during the fourth quarter worth about $27,000. Institutional investors and hedge funds own 65.67% of the company's stock.

Applied Digital Company Profile

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.

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