Applied Digital (NASDAQ:APLD) Lowered to Strong Sell Rating by Wall Street Zen

Wall Street Zen downgraded shares of Applied Digital (NASDAQ:APLD) from a sell rating to a strong sell rating in a research report report published on Saturday.

Other equities research analysts have also issued research reports about the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $83.00 price objective on shares of Applied Digital in a research note on Tuesday, July 28th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Morgan Stanley raised their target price on Applied Digital from $36.50 to $37.50 and gave the company an “equal weight” rating in a report on Thursday. Zacks Research raised Applied Digital from a “strong sell” rating to a “hold” rating in a research report on Monday, July 27th. Finally, Lake Street Capital upped their price target on Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Price Performance

NASDAQ APLD opened at $29.22 on Friday. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The firm has a market capitalization of $8.52 billion, a price-to-earnings ratio of -32.83 and a beta of 5.75. The company has a 50 day simple moving average of $35.48 and a 200-day simple moving average of $34.10. Applied Digital has a 52-week low of $13.16 and a 52-week high of $50.72.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data 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 analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. Applied Digital’s revenue for the quarter was up 406.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.24) EPS. Equities research analysts predict that Applied Digital will post -1.08 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 75,000 shares of Applied Digital stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at $4,154,724.70. This trade represents a 35.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares during the period. Situational Awareness LP increased 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 worth $319,978,000 after buying an additional 2,139,378 shares during the period. Geode Capital Management LLC increased its position in Applied Digital by 5.1% in the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock worth $154,151,000 after buying an additional 304,228 shares during the period. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the fourth quarter worth approximately $138,380,000. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after buying an additional 5,198,223 shares during the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

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.