Applied Digital (NASDAQ:APLD) Shares Down 1.8% - What's Next?

Key Points

• Applied Digital shares fell 1.8% to $23.25 in below-average trading volume, with the stock remaining well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $62.25, despite ratings ranging from “Strong Sell” to “Outperform.”
• The company’s latest quarter showed a significant revenue surge of 367.8% year over year to $300.39 million, while adjusted EPS of -$0.01 beat estimates; however, Applied Digital remains unprofitable, with a negative net margin and projected full-year EPS of -$1.09.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) was down 1.8% on Monday. The stock traded as low as $23.06 and last traded at $23.25. 14,505,166 shares were traded during trading, a decline of 37% from the average session volume of 22,843,420 shares. The stock had previously closed at $23.68.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on APLD. Zacks Research downgraded Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 26th. Wells Fargo & Company reissued an "overweight" rating and set a $55.00 price objective (up from $50.00) on shares of Applied Digital in a report on Thursday. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the company a "neutral" rating in a research note on Monday, September 21st. Northland Securities set a $82.00 target price on Applied Digital and gave the stock an "outperform" rating in a report on Wednesday, June 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research report on Tuesday, July 21st. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $62.25.

Applied Digital Stock Performance

The stock has a market cap of $7.03 billion, a price-to-earnings ratio of -14.18 and a beta of 5.99. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56. The stock's 50-day simple moving average is $27.00 and its two-hundred day simple moving average is $32.50.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.30) by $0.29. The company 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 business's quarterly revenue was up 367.8% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.03) earnings per share. Analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction that occurred 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 transaction, the director directly owned 133,378 shares of the company's stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 9.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Situational Awareness LP boosted its holdings in Applied Digital by 14.1% during the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company's stock valued at $574,000 after purchasing an additional 1,906,178 shares in the last quarter. Equitec Proprietary Markets LLC bought a new stake in shares of Applied Digital in the 2nd quarter valued at approximately $312,349,000. Hsbc Holdings PLC grew its stake in shares of Applied Digital by 6.2% in the 1st quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company's stock valued at $28,377,000 after purchasing an additional 72,460 shares during the period. Sei Investments Co. raised its holdings in shares of Applied Digital by 33.0% in the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock worth $25,964,000 after buying an additional 271,618 shares in the last quarter. Finally, Next Century Growth Investors LLC raised its holdings in shares of Applied Digital by 30.7% in the 4th quarter. Next Century Growth Investors LLC now owns 797,237 shares of the company's stock worth $19,548,000 after buying an additional 187,044 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

Applied Digital Company Profile

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

The company's business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

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