Applied Digital Corporation (NASDAQ:APLD) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Applied Digital “Moderate Buy”: Among 17 brokerages, 11 recommend buying, three strongly recommend buying, one rates it a hold and two recommend selling. The average 12-month price target is $68.15.
• Applied Digital reported quarterly revenue of $240.35 million, up 406.3% year over year and well above estimates, but its adjusted loss of $0.39 per share missed expectations of a $0.09 loss.
• Director Richard Nottenburg sold 75,000 shares for approximately $2.34 million, reducing his position by nearly 36%; insiders own 9.5% of the company, while institutional investors hold 65.67%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) has earned a consensus rating of "Moderate Buy" from the seventeen brokerages that are covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, eleven have given a buy rating and three have given a strong buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $68.15.

Several research firms have recently weighed in on APLD. Needham & Company LLC reaffirmed a "buy" rating and set a $83.00 price target on shares of Applied Digital in a research note on Tuesday, July 28th. Citizens Jmp lifted their target price on Applied Digital from $40.00 to $60.00 and gave the company a "market outperform" rating in a research report on Thursday, May 21st. Craig Hallum upped their target price on Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Zacks Research downgraded Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Finally, Lucid Cap Mkts upgraded Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director directly owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently modified their holdings of the business. WINTON GROUP Ltd bought a new position in shares of Applied Digital during the second quarter valued at approximately $209,000. Engineers Gate Manager LP bought a new position in Applied Digital in the second quarter worth approximately $4,350,000. Integrated Wealth Concepts LLC purchased a new stake in Applied Digital during the second quarter worth $265,000. NewEdge Advisors LLC lifted its holdings in Applied Digital by 35.1% during the second quarter. NewEdge Advisors LLC now owns 81,134 shares of the company's stock worth $3,026,000 after buying an additional 21,093 shares during the period. Finally, Steamboat Capital Partners LLC bought a new stake in Applied Digital during the 2nd quarter valued at $7,203,000. Hedge funds and other institutional investors own 65.67% of the company's stock.

Applied Digital Stock Down 4.1%

NASDAQ:APLD opened at $27.14 on Thursday. Applied Digital has a twelve month low of $15.42 and a twelve month high of $50.72. The company has a market cap of $7.91 billion, a price-to-earnings ratio of -30.49 and a beta of 5.72. The stock has a fifty day simple moving average of $28.57 and a 200-day simple moving average of $32.84. 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 issued its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to analysts' expectations of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm's revenue for the quarter was up 406.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.24) earnings per share. Analysts anticipate that Applied Digital will post -1.09 EPS for the current year.

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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