Applied Digital (NASDAQ:APLD) Trading Up 4% - Time to Buy?

Key Points

• Applied Digital shares rose 4% to about $25.91, although trading volume was 32% below the average daily level.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $68.15, despite some sell and strong-sell ratings.
• The company’s revenue surged 406.3% year over year to $240.35 million, but it missed quarterly EPS estimates and remained unprofitable, reporting negative margins and return on equity.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares traded up 4% during trading on Thursday . The company traded as high as $25.97 and last traded at $25.91. Approximately 15,760,353 shares changed hands during trading, a decline of 32% from the average daily volume of 23,313,639 shares. The stock had previously closed at $24.91.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Morgan Stanley raised their price target on Applied Digital from $36.50 to $37.50 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Craig Hallum upped their price objective on Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Needham & Company LLC restated a "buy" rating and set a $83.00 target price on shares of Applied Digital in a report on Tuesday, July 28th. Wall Street Zen lowered Applied Digital from a "sell" rating to a "strong sell" rating in a research report on Sunday. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Stock Up 4.0%

The firm has a market capitalization of $7.55 billion, a P/E ratio of -29.11 and a beta of 5.72. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The firm's 50-day moving average is $29.71 and its 200 day moving average is $33.08.

Applied Digital (NASDAQ:APLD - Get Free Report) last released 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 firm had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.Applied Digital's revenue for the quarter was up 406.3% on a year-over-year basis. During the same quarter last year, the company posted ($0.24) EPS. As a group, equities research analysts predict that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Insider Activity

In related 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 sale, the director owned 133,378 shares of the company's stock, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently made changes to their positions in the business. Ameriflex Group Inc. bought a new stake in shares of Applied Digital in the fourth quarter worth $25,000. McMillan Office Inc. bought a new position in Applied Digital in the fourth quarter valued at $25,000. Larson Financial Group LLC increased its stake in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after buying an additional 1,129 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in Applied Digital in the 2nd quarter valued at $26,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in Applied Digital during the 4th quarter worth about $27,000. 65.67% of the stock is 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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