Applied Digital (NASDAQ:APLD) Upgraded by Texas Capital to Strong-Buy Rating

Texas Capital upgraded shares of Applied Digital (NASDAQ:APLD) to a strong-buy rating in a research note released on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Roth Mkm upped their price target on shares of Applied Digital to $58.00 and gave the stock a “buy” rating in a research note on Thursday, January 8th. Arete Research began coverage on Applied Digital in a research report on Wednesday, January 7th. They issued a “buy” rating on the stock. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Finally, B. Riley lifted their price objective on Applied Digital to $53.00 and gave the company a “buy” rating in a report on Friday, January 9th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $33.27.

Applied Digital Price Performance

APLD stock traded down $0.70 during midday trading on Tuesday, reaching $34.36. The stock had a trading volume of 11,237,965 shares, compared to its average volume of 41,503,473. The company’s fifty day simple moving average is $28.25 and its 200 day simple moving average is $23.29. The company has a market cap of $9.61 billion, a price-to-earnings ratio of -63.63 and a beta of 6.89. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79. Applied Digital has a 52-week low of $3.31 and a 52-week high of $40.20.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The firm had revenue of $126.59 million during the quarter, compared to analysts’ expectations of $82.22 million. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The business’s quarterly revenue was up 250.1% on a year-over-year basis. During the same period last year, the company earned ($0.06) EPS. As a group, sell-side analysts predict that Applied Digital will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $35.45, for a total value of $425,400.00. Following the transaction, the director owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. This trade represents a 4.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Wes Cummins sold 165,000 shares of Applied Digital stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the transaction, the chief executive officer directly owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 526,641 shares of company stock valued at $18,606,039. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. Hood River Capital Management LLC grew its stake in Applied Digital by 2.8% in the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock valued at $220,120,000 after purchasing an additional 592,314 shares during the period. Vanguard Group Inc. grew its stake in shares of Applied Digital by 23.2% during the 3rd quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after acquiring an additional 3,339,062 shares during the period. Situational Awareness LP increased its holdings in Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after acquiring an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in 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 valued at $52,561,000 after purchasing an additional 5,198,223 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Applied Digital by 20.2% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company’s stock worth $73,388,000 after purchasing an additional 537,839 shares during the period. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

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.