Applied Digital (NASDAQ:APLD) Upgraded to Sell at Wall Street Zen

Key Points

• Wall Street Zen upgraded Applied Digital from “strong sell” to “sell,” while broader analyst coverage remains more positive, with a “Moderate Buy” consensus and an average price target of $68.15.
• Shares opened at $27.21 after falling 5%, well below the 52-week high of $50.72. The stock has a market capitalization of approximately $7.93 billion and a high beta of 5.75.
• Applied Digital reported quarterly revenue of $240.35 million, up 406.3% year over year, but missed earnings estimates with a loss of $0.39 per share versus the expected loss of $0.09. A company director also sold 75,000 shares worth about $2.34 million.

Applied Digital (NASDAQ:APLD - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued to investors on Saturday.

Several other research analysts also recently weighed in on APLD. Needham & Company LLC restated a "buy" rating and set a $83.00 price objective on shares of Applied Digital in a report on Tuesday, July 28th. B. Riley Financial reiterated a "buy" rating and set a $75.00 price objective (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Morgan Stanley boosted their target price on shares of Applied Digital from $36.50 to $37.50 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Compass Point restated a "buy" rating and issued a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Finally, Lake Street Capital raised their price target on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $68.15.

Applied Digital Trading Down 5.0%

Shares of Applied Digital stock opened at $27.21 on Friday. The stock has a market capitalization of $7.93 billion, a PE ratio of -30.57 and a beta of 5.75. Applied Digital has a 52 week low of $13.16 and a 52 week high of $50.72. The stock has a 50 day moving average price of $32.78 and a two-hundred day moving average price of $33.58. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its 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 16.42% and a negative net margin of 37.78%.The firm had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same period in the previous year, the company earned ($0.24) earnings per share. Applied Digital's revenue for the quarter was up 406.3% compared to the same quarter last year. As a group, equities analysts anticipate that Applied Digital will post -1.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the sale, the director directly owned 133,378 shares of the company's stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Applied Digital by 36.4% during the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after buying an additional 6,445,908 shares during the last quarter. Situational Awareness LP boosted its stake in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after acquiring an additional 2,139,378 shares during the last quarter. Equitec Proprietary Markets LLC purchased a new position in Applied Digital in the second quarter valued at about $312,349,000. Geode Capital Management LLC grew its position in shares of Applied Digital by 5.1% during the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after acquiring an additional 304,228 shares during the period. Finally, Value Aligned Research Advisors LLC bought a new position in shares of Applied Digital during the 4th quarter valued at approximately $138,380,000. Institutional investors 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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