Applied Digital (NASDAQ:APLD) Stock Rating Upgraded by Lucid Cap Mkts

Key Points

• Applied Digital was upgraded to “strong-buy” by Lucid Cap Mkts, adding to a mostly bullish analyst backdrop. The stock now carries an average “Buy” rating and a consensus price target of $59.11.
• Analysts recently raised price targets from firms including Lake Street Capital and Compass Point, both setting $70 targets, while Citigroup reiterated an “outperform” rating. Overall, three analysts rate it Strong Buy, eleven Buy, one Hold, and one Sell.
• The company reported mixed quarterly results, missing EPS estimates but beating revenue expectations with $108.55 million, up 139.3% year over year. Shares were trading near their 52-week high at $49.65, and insiders sold shares in recent weeks.

Applied Digital (NASDAQ:APLD - Get Free Report) was upgraded by investment analysts at Lucid Cap Mkts to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

Several other brokerages have also recently commented on APLD. Citigroup reaffirmed an "outperform" rating on shares of Applied Digital in a research report on Thursday, May 21st. Lake Street Capital reaffirmed a "buy" rating and issued a $70.00 target price (up from $55.00) on shares of Applied Digital in a research report on Thursday, May 21st. Compass Point reaffirmed a "buy" rating and issued a $70.00 target price on shares of Applied Digital in a research report on Friday, May 22nd. Northland Securities set a $56.00 target price on Applied Digital in a research report on Wednesday, January 28th. Finally, Zacks Research raised Applied Digital from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $59.11.

Applied Digital Price Performance

Shares of Applied Digital stock opened at $49.65 on Wednesday. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. Applied Digital has a fifty-two week low of $6.68 and a fifty-two week high of $50.73. The firm has a fifty day moving average price of $33.99 and a two-hundred day moving average price of $31.31. The company has a market cap of $14.19 billion, a PE ratio of -67.09 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. Applied Digital's revenue for the quarter was up 139.3% on a year-over-year basis. During the same period last year, the company earned ($0.08) earnings per share. Analysts expect that Applied Digital will post -0.61 EPS for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 35,000 shares of company stock valued at $1,182,175 over the last quarter. Corporate insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of APLD. AQR Capital Management LLC raised its stake in Applied Digital by 84.8% during the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after acquiring an additional 8,692 shares in the last quarter. NewEdge Advisors LLC raised its stake in Applied Digital by 239.1% during the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after acquiring an additional 23,457 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after buying an additional 3,542 shares in the last quarter. Strs Ohio acquired a new stake in shares of Applied Digital in the first quarter valued at $71,000. Finally, Cetera Investment Advisers increased its stake in shares of Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after buying an additional 23,360 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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