Applied Digital Corporation (NASDAQ:APLD) Stock Has Consensus Price Target of $59.75 According to Brokerages

Key Points

• Analysts remain moderately bullish: Nineteen research firms give Applied Digital a consensus “Moderate Buy” rating, with an average 12-month price target of $59.75. Ratings include twelve buys, three strong buys, two holds and two sells.
• Applied Digital reported quarterly revenue of $300.39 million, up 367.8% year over year, and an adjusted loss of $0.01 per share that beat estimates by $0.29. Despite the strong revenue growth, the company posted a negative net margin of 51.28%.
• Insider and institutional activity was mixed: President Jason Gechen Zhang bought 300,000 shares, while a director sold 75,000 shares. Institutional investors and hedge funds own approximately 65.67% of the company.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) has received an average recommendation of "Moderate Buy" from the nineteen research firms that are currently covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, two have given a hold recommendation, twelve have issued a buy recommendation and three have assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $59.75.

APLD has been the subject of a number of recent analyst reports. Rothschild & Co Redburn set a $22.00 price target on Applied Digital and gave the stock a "neutral" rating in a report on Monday, September 21st. Wall Street Zen cut Applied Digital from a "sell" rating to a "strong sell" rating in a research report on Sunday, August 30th. Citigroup reiterated a "market outperform" rating on shares of Applied Digital in a report on Thursday, October 8th. B. Riley Financial reissued a "buy" rating and set a $75.00 target price (up from $66.00) on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Morgan Stanley set a $41.00 target price on Applied Digital and gave the stock an "equal weight" rating in a research note on Friday, October 9th.

Applied Digital Price Performance

Shares of APLD opened at $19.41 on Friday. Applied Digital has a twelve month low of $17.50 and a twelve month high of $50.72. The firm's fifty day simple moving average is $24.27 and its 200-day simple moving average is $31.45. The firm has a market capitalization of $5.87 billion, a price-to-earnings ratio of -11.84 and a beta of 5.99. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.30) by $0.29. The business had revenue of $300.39 million during the quarter, compared to analysts' expectations of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The company's revenue for the quarter was up 367.8% on a year-over-year basis. During the same period in the previous year, the company earned ($0.03) EPS. Equities analysts forecast that Applied Digital will post -2.17 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, President Jason Gechen Zhang purchased 300,000 shares of the company's stock in a transaction on Friday, October 16th. The shares were bought at an average cost of $18.86 per share, for a total transaction of $5,658,000.00. Following the completion of the purchase, the president directly owned 2,839,227 shares of the company's stock, valued at approximately $53,547,821.22. This trade represents a 11.81% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard Nottenburg sold 75,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The SEC filing for this sale provides additional information. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Situational Awareness LP raised its position in Applied Digital by 18.9% in the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after purchasing an additional 2,139,378 shares during the last quarter. Equitec Proprietary Markets LLC acquired a new stake in Applied Digital during the 2nd quarter worth $312,349,000. Hsbc Holdings PLC purchased a new position in Applied Digital during the 4th quarter worth $29,510,000. Sei Investments Co. grew its position in Applied Digital by 33.0% during the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock worth $25,964,000 after purchasing an additional 271,618 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Applied Digital by 32.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company's stock worth $21,681,000 after purchasing an additional 143,308 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.

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