Applied Digital (NASDAQ:APLD) Trading Down 4.5% - What's Next?

Key Points

• Applied Digital shares fell 4.5% to about $29.87, with trading volume roughly 40% below its average. The stock remains highly volatile, with a beta of 5.75.
• Analysts remain broadly bullish, with an average rating of “Buy” and a consensus price target of $68.05; recent targets range from $36.50 to $90.00, though Weiss Ratings maintains a sell rating.
• The latest quarter showed revenue growth of 406.3% to $240.35 million, but the company reported an adjusted loss of $0.39 per share, missing estimates of a $0.09 loss. Analysts expect a full-year loss of $0.88 per share.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares traded down 4.5% during trading on Wednesday . The company traded as low as $29.80 and last traded at $29.87. Approximately 14,609,193 shares traded hands during trading, a decline of 40% from the average daily volume of 24,428,559 shares. The stock had previously closed at $31.27.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on APLD shares. Morgan Stanley started coverage on Applied Digital in a research report on Thursday, July 23rd. They issued a "buy" rating and a $36.50 price objective on the stock. B. Riley Financial reaffirmed a "buy" rating and issued a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday. Craig Hallum lifted their price target on shares of Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a research report on Tuesday, July 21st. Finally, Lake Street Capital upped their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $68.05.

Applied Digital Trading Down 4.5%

The company has a market cap of $8.71 billion, a PE ratio of -33.56 and a beta of 5.75. The stock has a 50 day moving average price of $36.64 and a 200 day moving average price of $34.23. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. During the same period in the previous year, the firm earned ($0.24) EPS. The company's revenue was up 406.3% on a year-over-year basis. Sell-side analysts predict that Applied Digital Corporation will post -0.88 EPS for the current fiscal year.

Institutional Investors Weigh In On Applied Digital

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in shares of Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after purchasing an additional 6,445,908 shares during the period. Situational Awareness LP increased its position in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock worth $319,978,000 after buying an additional 2,139,378 shares in the last quarter. Geode Capital Management LLC increased its position in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock worth $154,151,000 after buying an additional 304,228 shares in the last quarter. Value Aligned Research Advisors LLC bought a new position in shares of Applied Digital in the fourth quarter worth about $138,380,000. Finally, BNP Paribas Financial Markets lifted its position in shares of Applied Digital by 24,356.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after buying an additional 5,198,223 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

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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