What 8 Analyst Ratings Have To Say About Applied Digital

Throughout the last three months, 8 analysts have evaluated Applied Digital APLD, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $9.12, a high estimate of $15.00, and a low estimate of $5.00. A decline of 26.33% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Applied Digital. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Applied Digital. This information offers 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 explore the dynamics of price targets, providing estimates for the future value of Applied Digital's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Applied Digital's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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About Applied Digital

Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high performance computing industry.

A Deep Dive into Applied Digital's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Applied Digital's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 207.65%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -144.96%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Applied Digital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -45.84%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Applied Digital's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -11.18%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Applied Digital's debt-to-equity ratio stands notably higher than the industry average, reaching 2.48. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.