Deep Dive Into Applied Digital Stock: Analyst Perspectives (13 Ratings)

In the last three months, 13 analysts have published ratings on Applied Digital APLD, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $10.15, with a high estimate of $12.00 and a low estimate of $5.00. This upward trend is evident, with the current average reflecting a 9.02% increase from the previous average price target of $9.31.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Applied Digital's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 provide insights into price targets, offering estimates for the future value of Applied Digital's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Applied Digital's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Discovering Applied Digital: A Closer Look

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's Economic Impact: An Analysis

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Applied Digital's revenue growth over a period of 3 months has been noteworthy. As of 31 August, 2024, the company achieved a revenue growth rate of approximately 67.12%. This indicates a substantial 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 is impressive, surpassing industry averages. With a net margin of -7.07%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Applied Digital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.34%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Applied Digital's ROA excels beyond industry benchmarks, reaching -0.5%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.76, Applied Digital adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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