Applied Digital Corporation (APLD) – What Are Analysts Thinking About This Stock?

Shares of Applied Digital Corporation (NASDAQ:APLD) have been assigned an average rating of “Moderate Buy” from the nineteen research firms that are currently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, two have given a hold recommendation, twelve have given a buy recommendation and three have given a strong buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $57.75.

A number of research firms have weighed in on APLD. Zacks Research downgraded shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Wall Street Zen cut shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Monday, October 19th. Needham & Company LLC cut their price target on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Finally, Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Thursday, October 8th.

Applied Digital Price Performance

APLD stock opened at $17.81 on Friday. Applied Digital has a twelve month low of $16.16 and a twelve month high of $50.72. The business’s 50-day simple moving average is $23.66 and its 200 day simple moving average is $31.15. The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data 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 business had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. Applied Digital’s quarterly revenue was up 367.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.03) earnings per share. Sell-side analysts predict that Applied Digital will post -2.17 EPS for the current fiscal year.

Key Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: AI data-center stocks are recovering after a financing scare weighed on the group, supporting Applied Digital’s rebound. Article: Applied Digital Surges as AI Data Center Stocks Rebound
• Positive Sentiment: A broader rally in data-center and cloud-computing stocks is also lifting APLD, according to market coverage. Article: Applied Digital Stock Jumps: What’s Going On?
• Negative Sentiment: Financing remains a key risk: the CEO has said 800 MW of planned capacity still needs funding, raising concerns about the cost and execution of the company’s expansion. Article: Applied Digital Slumps as CEO Says 800 MW Still Needs Financing
• Negative Sentiment: Other recent commentary highlights debt and lease obligations, interest costs, and questions about valuation—factors that could keep investors cautious despite the sector rebound. Article: Applied Digital’s Interest Bill and Financing Gap

Insider Transactions at Applied Digital

In related news, CEO Wes Cummins purchased 55,803 shares of the firm’s stock in a transaction that occurred on Friday, October 16th. The shares were acquired at an average price of $18.04 per share, with a total value of $1,006,686.12. Following the purchase, the chief executive officer directly owned 5,874,453 shares in the company, valued at $105,975,132.12. This represents a 0.96% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, President Jason Gechen Zhang purchased 300,000 shares of the firm’s stock in a transaction that occurred on Friday, October 16th. The stock was bought at an average cost of $18.86 per share, for a total transaction of $5,658,000.00. Following the purchase, the president owned 2,839,227 shares in the company, valued at $53,547,821.22. This represents a 11.81% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently made changes to their positions in the company. Bartlett & CO. Wealth Management LLC boosted its holdings in shares of Applied Digital by 244.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock worth $29,000 after acquiring an additional 855 shares in the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Applied Digital during the second quarter worth $37,000. Root Financial Partners LLC acquired a new stake in shares of Applied Digital in the third quarter valued at $52,000. Global Assets Advisory LLC acquired a new stake in shares of Applied Digital in the first quarter valued at $53,000. Finally, CoreCap Advisors LLC raised its holdings in shares of Applied Digital by 246.6% in the third quarter. CoreCap Advisors LLC now owns 2,194 shares of the company’s stock valued at $53,000 after buying an additional 1,561 shares during 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 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.