Applied Digital Corporation (NASDAQ:APLD – Get Free Report)’s stock price shot up 7.5% during mid-day trading on Monday. The stock traded as high as $16.94 and last traded at $16.72. 22,007,817 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 23,384,209 shares. The stock had previously closed at $15.55.
Applied Digital News Roundup
Investors following APLD have been watching these news items:
- Positive Sentiment: A proposed Louisiana agreement could allow up to $4.6 billion in bonds for Applied Digital’s AI campus, potentially supported by Meta’s lease. That could help finance campus development, although the agreement is proposed. Article: Meta’s Lease Could Back Up to $4.6 Billion in Louisiana Bonds
- Negative Sentiment: Applied Digital’s reported roughly $11 billion of CoreWeave lease exposure raises concern about tenant concentration, especially as CoreWeave debt has shown signs of credit stress. Any deterioration in the tenant’s ability to fund growth could threaten confidence in the lease-related business outlook. Article: Applied Digital Carries $11 Billion in CoreWeave Exposure
- Negative Sentiment: Analyst concerns about leverage are mounting: a Seeking Alpha article downgraded the stock, and Morgan Stanley cut its price target, adding pressure to sentiment around Applied Digital’s financing risks. Article: Applied Digital: Leverage Risks Can No Longer Be Ignored Article: Applied Digital Stock Price Target Cut by Morgan Stanley
Analyst Upgrades and Downgrades
Several brokerages have recently weighed in on APLD. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Thursday, October 8th. Wells Fargo & Company reiterated an “overweight” rating and issued a $55.00 price target (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Wall Street Zen downgraded Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Monday, October 19th. Finally, UBS Group restated a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and an average price target of $56.42.
Get Our Latest Research Report on APLD
Applied Digital Price Performance
The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56. The company’s fifty day moving average price is $22.57 and its 200 day moving average price is $30.66. The firm has a market capitalization of $5.42 billion, a price-to-earnings ratio of -10.92 and a beta of 5.58.
Applied Digital (NASDAQ:APLD – Get Free Report) last issued its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. The firm had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. Applied Digital’s revenue was up 367.8% on a year-over-year basis. During the same quarter last year, the company posted ($0.03) earnings per share. Equities research analysts expect that Applied Digital Corporation will post -2.17 earnings per share for the current year.
Insiders Place Their Bets
In other news, CEO Wes Cummins purchased 55,803 shares of Applied Digital stock in a transaction dated Friday, October 16th. The stock was bought at an average price of $18.04 per share, with a total value of $1,006,686.12. Following the completion of the acquisition, the chief executive officer owned 5,874,453 shares in the company, valued at $105,975,132.12. The trade was a 0.96% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Jason Gechen Zhang purchased 300,000 shares of the stock in a transaction dated Friday, October 16th. The shares were purchased at an average price of $18.86 per share, with a total value of $5,658,000.00. Following the transaction, the president directly owned 2,839,227 shares of the company’s stock, valued at approximately $53,547,821.22. The trade was a 11.81% increase in their position. The disclosure for this purchase is available in the SEC filing. 9.50% of the stock is owned by corporate insiders.
Institutional Investors Weigh In On Applied Digital
A number of hedge funds have recently made changes to their positions in the business. Bartlett & CO. Wealth Management LLC raised its stake in Applied Digital by 244.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock valued at $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 valued at about $37,000. Advisors Asset Management Inc. acquired a new stake in Applied Digital in the third quarter worth about $43,000. Root Financial Partners LLC acquired a new stake in Applied Digital in the third quarter worth about $52,000. Finally, Global Assets Advisory LLC acquired a new stake in Applied Digital in the first quarter worth about $53,000. Institutional investors own 65.67% of the company’s stock.
Applied Digital Company Profile
Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.
Featured Stories
- Five stocks we like better than Applied Digital
- Keeping AI Cool: AAON Rides the AI Heatwave to Record Growth
- AST SpaceMobile Has a New Rocket Plan, But Its Cash-Burn Problem Isn’t Going Away
- Powering Up the Moon: Redwire’s $40 Million NASA Award
- Can Constellation Energy’s Contracts Power a Stock Rebound?
Receive News & Ratings for Applied Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Digital and related companies with MarketBeat.com's FREE daily email newsletter.
