Applied Digital (NASDAQ:APLD) Shares Up 6% - Time to Buy?

Key Points

• Applied Digital shares rose 6% to about $31.27 in mid-day trading, with roughly 20.2 million shares changing hands.
• Analyst sentiment remains broadly positive: the stock has a consensus “Buy” rating and a $68.05 average price target, although ratings range from “Strong Buy” to “Sell.”
• Quarterly revenue surged 406.3% year over year to $240.35 million, but the company reported an EPS loss of $0.39 versus the expected $0.09 loss, alongside negative margins and return on equity.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price traded up 6% during mid-day trading on Tuesday . The company traded as high as $31.84 and last traded at $31.27. Approximately 20,193,752 shares traded hands during trading, a decline of 18% from the average daily volume of 24,508,494 shares. The stock had previously closed at $29.49.

Wall Street Analyst Weigh In

Several analysts have recently commented on APLD shares. Citizens Jmp raised their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a research report on Thursday, May 21st. Morgan Stanley assumed coverage on shares of Applied Digital in a research note on Thursday, July 23rd. They set a "buy" rating and a $36.50 target price on the stock. Zacks Research upgraded shares of Applied Digital from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Wall Street Zen cut shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Finally, Northland Securities set a $82.00 price target on shares of Applied Digital and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital currently has a consensus rating of "Buy" and a consensus price target of $68.05.

Applied Digital Price Performance

The business has a 50-day moving average price of $36.92 and a two-hundred day moving average price of $34.26. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The company has a market capitalization of $9.11 billion, a price-to-earnings ratio of -35.13 and a beta of 5.75.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly 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 analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business's revenue for the quarter was up 406.3% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.24) EPS. As a group, research analysts anticipate that Applied Digital Corporation will post -0.88 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Albion Financial Group UT bought a new position in Applied Digital in the 4th quarter valued at about $25,000. Activest Wealth Management bought a new stake in Applied Digital during the 4th quarter worth approximately $25,000. FNY Investment Advisers LLC bought a new stake in Applied Digital during the 2nd quarter worth approximately $37,000. Ameriflex Group Inc. purchased a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Finally, McMillan Office Inc. purchased a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source