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

Applied Digital (NASDAQ:APLD) was downgraded by investment analysts at Wall Street Zen from a “sell” rating to a “strong sell” rating in a report issued on Saturday.

APLD has been the subject of several other research reports. Craig Hallum increased their price objective on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. Zacks Research raised shares of Applied Digital from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Morgan Stanley upped their price target on shares of Applied Digital from $36.50 to $37.50 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Northland Securities set a $82.00 price target on shares of Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Applied Digital currently has a consensus rating of “Moderate Buy” and an average price target of $68.15.

Applied Digital Stock Performance

NASDAQ:APLD opened at $29.22 on Friday. Applied Digital has a twelve month low of $13.16 and a twelve month high of $50.72. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The stock’s 50-day simple moving average is $35.48 and its 200 day simple moving average is $34.07. The firm has a market capitalization of $8.52 billion, a PE ratio of -32.83 and a beta of 5.75.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same period in the previous year, the firm posted ($0.24) EPS. The firm’s revenue was up 406.3% compared to the same quarter last year. On average, analysts anticipate that Applied Digital will post -1.08 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Activest Wealth Management acquired a new stake in shares of Applied Digital during the fourth quarter worth $25,000. Ameriflex Group Inc. acquired a new position in Applied Digital in the fourth quarter valued at $25,000. McMillan Office Inc. bought a new stake in Applied Digital during the fourth quarter valued at $25,000. Larson Financial Group LLC boosted its position in Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after acquiring an additional 1,129 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in Applied Digital during the 2nd quarter worth about $26,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.