Applied Digital (NASDAQ:APLD) Stock Price Up 19.8% - Still a Buy?

Key Points

• Applied Digital shares surged 19.8% to about $27.82, although trading volume was 76% below the average session volume.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a consensus price target of $67.15; however, ratings range from “Strong Buy” to “Sell,” reflecting significant uncertainty.
• The company’s revenue rose 406.3% year over year to $240.35 million, but it missed earnings expectations with a quarterly loss of $0.39 per share and continues to report negative margins and return on equity.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares shot up 19.8% during mid-day trading on Thursday . The company traded as high as $27.98 and last traded at $27.8230. Approximately 5,807,640 shares traded hands during trading, a decline of 76% from the average session volume of 24,409,553 shares. The stock had previously closed at $23.22.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on APLD shares. Wall Street Zen cut shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Citizens Jmp boosted their price objective on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a report on Thursday, May 21st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a report on Tuesday, July 21st. Needham & Company LLC reissued a "buy" rating and issued a $83.00 price target on shares of Applied Digital in a report on Tuesday. Finally, Roth Capital restated a "buy" rating and issued a $65.00 price objective on shares of Applied Digital in a research report on Thursday, April 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Applied Digital currently has an average rating of "Buy" and an average target price of $67.15.

Applied Digital Price Performance

The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market capitalization of $8.04 billion, a price-to-earnings ratio of -31.70 and a beta of 5.67. The stock has a 50-day moving average price of $38.01 and a 200 day moving average price of $34.46.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 17.53% and a negative net margin of 37.78%.The business had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same period in the previous year, the company posted ($0.24) EPS. The business's revenue for the quarter was up 406.3% compared to the same quarter last year. As a group, equities research analysts expect that Applied Digital Corporation will post -1.1 earnings per share for the current year.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. raised its position in Applied Digital by 8.6% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock worth $93,000 after acquiring an additional 300 shares during the period. Concurrent Investment Advisors LLC lifted its stake in Applied Digital by 1.5% in the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock valued at $523,000 after buying an additional 318 shares in the last quarter. Brookstone Capital Management boosted its holdings in Applied Digital by 3.6% in the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock worth $227,000 after buying an additional 321 shares during the last quarter. Independent Advisor Alliance lifted its position in shares of Applied Digital by 4.6% in the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock valued at $226,000 after acquiring an additional 407 shares in the last quarter. Finally, GAMMA Investing LLC boosted its stake in shares of Applied Digital by 28.5% in the second quarter. GAMMA Investing LLC now owns 2,092 shares of the company's stock worth $78,000 after acquiring an additional 464 shares during the last quarter. Institutional investors and hedge funds 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.

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