The Analyst Verdict: Applied Digital In The Eyes Of 6 Experts
6 analysts have shared their evaluations of Applied Digital (NASDAQ:APLD) during the recent three months, expressing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 2 | 0 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 2 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $13.0, a high estimate of $20.00, and a low estimate of $10.00. Surpassing the previous average price target of $11.80, the current average has increased by 10.17%.
Exploring Analyst Ratings: An In-Depth Overview
The standing of Applied Digital among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Todaro | Needham | Maintains | Buy | $11.00 | $11.00 |
| Mike Grondahl | Northland Capital Markets | Raises | Outperform | $20.00 | $12.00 |
| Joe Flynn | Compass Point | Announces | Buy | $10.00 | - |
| Kevin Dede | HC Wainwright & Co. | Raises | Buy | $12.00 | $10.00 |
| Brett Knoblauch | Cantor Fitzgerald | Lowers | Overweight | $14.00 | $15.00 |
| John Todaro | Needham | Maintains | Buy | $11.00 | $11.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Applied Digital. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Applied Digital compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Applied Digital's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Applied Digital's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Applied Digital analyst ratings.
About Applied Digital
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.
Applied Digital: Delving into Financials
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Applied Digital displayed positive results in 3 months. As of 30 November, 2024, the company achieved a solid revenue growth rate of approximately 51.34%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Applied Digital's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -218.19%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Applied Digital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -41.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Applied Digital's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -11.23%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a high debt-to-equity ratio of 1.84, Applied Digital faces challenges in effectively managing its debt levels, indicating potential financial strain.
The Significance of Analyst Ratings Explained
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.