Applied Digital Co. (NASDAQ:APLD) Receives Consensus Recommendation of “Buy” from Analysts

Applied Digital Co. (NASDAQ:APLD) has recently been given an average recommendation of "Buy" by nine analysts covering the stock, according to reports from MarketBeat. Each of these analysts has provided a "buy" rating, and the average twelve-month price target for the stock stands at $12.11.

A number of brokerage firms have issued updated reports on APLD. For instance, Cantor Fitzgerald lowered its price target from $15.00 to $14.00 while maintaining an "overweight" rating. This adjustment was made in a report released on January 15. In contrast, Northland Securities increased its target from $12.00 to $20.00 and tagged the company with an "outperform" rating in a report published on February 4. Additionally, Compass Point initiated coverage on Applied Digital on January 28, assigning a "buy" rating with a target price of $10.00. On the same day as Cantor Fitzgerald’s report, Needham & Company LLC reaffirmed a "buy" stance, setting an $11.00 price target. Finally, on January 15, HC Wainwright also raised its price target from $10.00 to $12.00 while maintaining a "buy" rating.

Insider Trading Activities

In other recent developments, CEO Wes Cummins sold 200,000 shares of the company stock on November 27 at an average price of $9.20, totaling $1.84 million. Post-sale, he holds 3,875,955 shares valued at approximately $35.66 million, marking a 4.91% decrease in his holdings. This transaction has been reported in a filing with the Securities & Exchange Commission. Similarly, Director Richard N. Nottenburg sold 20,000 shares on January 17 at an average price of $8.85, amounting to $177,000. After this sale, he retains 342,923 shares worth around $3.03 million, a decrease of 5.51%. In the last quarter, insiders collectively sold 270,000 shares valued at $2.48 million, reflecting that 11.81% of the stock is owned by insiders.

Institutional Investor Activity

Institutions have also been active in adjusting their stakes in Applied Digital. The Manufacturers Life Insurance Company increased its investment by 25% in the second quarter, now holding 37,641 shares worth $224,000 after acquiring an additional 7,517 shares. SG Americas Securities LLC entered a new position worth $426,000 during the third quarter, while Jade Capital Advisors LLC bought another new stake valued at $236,000. Notably, Private Advisor Group LLC escalated its holdings by 159.7%, now owning 38,700 shares after buying 23,800 more in the last quarter, which are worth $319,000. Furthermore, Wealth Enhancement Advisory Services LLC also made a new investment in the same quarter, approximately worth $88,000. Altogether, institutional investors control about 65.67% of Applied Digital's stock.

Current Stock Performance

As of Wednesday, shares of Applied Digital opened at $7.59. The company has a market cap of $1.69 billion, a price-to-earnings ratio of -4.39, and a beta of 4.78. The stock has seen a 1-year low of $2.36 and a high of $11.25. Its 50-day and 200-day simple moving averages stand at $8.55 and $7.22, respectively. The company has a debt-to-equity ratio of 1.22, with a current ratio and quick ratio both at 0.77.

In its latest earnings report released on January 14, Applied Digital reported a loss of $0.06 earnings per share (EPS), surpassing the consensus estimate of a loss of $0.14 by $0.08. The revenue for the quarter was reported at $63.87 million, exceeding analysts' expectations of $62.41 million. Year-over-year, the company's revenue increased by 51.3%. During the same quarter last year, the company reported a loss of $0.05 EPS. Analysts predict that Applied Digital will report an EPS of -0.96 for the current fiscal year.

About Applied Digital

Applied Digital Corporation specializes in designing, developing, and operating data centers across North America. These facilities provide essential digital infrastructure solutions tailored for the high-performance computing sector. The company is also engaged in offering cloud services for artificial intelligence, as well as hosting for high-performance computing and cryptocurrency data centers.

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