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

Applied Digital (NASDAQ:APLD) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Sunday.

Several other brokerages also recently commented on APLD. HC Wainwright boosted their price objective on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 10th. Craig Hallum upped their price target on Applied Digital from $12.00 to $23.00 and gave the stock a “buy” rating in a research note on Monday, August 18th. Lake Street Capital lifted their price objective on shares of Applied Digital from $18.00 to $37.00 and gave the company a “buy” rating in a research report on Friday, October 10th. Compass Point initiated coverage on shares of Applied Digital in a research report on Monday, September 15th. They set a “buy” rating for the company. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Applied Digital has a consensus rating of “Moderate Buy” and an average price target of $22.10.

Applied Digital Stock Performance

Shares of APLD opened at $35.90 on Friday. The business has a 50-day simple moving average of $21.48 and a two-hundred day simple moving average of $13.14. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. Applied Digital has a 52 week low of $3.31 and a 52 week high of $40.20. The stock has a market cap of $10.04 billion, a price-to-earnings ratio of -31.77 and a beta of 6.77.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. The company had revenue of $38.01 million during the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The firm’s revenue was up 84.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.15) EPS. On average, analysts expect that Applied Digital will post -0.96 EPS for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the business’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. The trade was a 27.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Wes Cummins sold 400,000 shares of the firm’s stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the completion of the sale, the chief executive officer owned 2,659,379 shares of the company’s stock, valued at $40,582,123.54. This trade represents a 13.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock worth $7,713,675 over the last ninety days. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Applied Digital by 29.4% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,778 shares of the company’s stock worth $77,000 after buying an additional 3,127 shares during the period. Johnson Investment Counsel Inc. bought a new stake in shares of Applied Digital during the first quarter worth $90,000. PFG Investments LLC purchased a new stake in shares of Applied Digital during the first quarter valued at $79,000. Crumly & Associates Inc. grew its holdings in shares of Applied Digital by 48.8% in the first quarter. Crumly & Associates Inc. now owns 27,506 shares of the company’s stock worth $155,000 after purchasing an additional 9,022 shares during the last quarter. Finally, Cambridge Investment Research Advisors Inc. bought a new stake in Applied Digital during the 1st quarter valued at about $223,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.