Deep Dive Into Applied Digital Stock: Analyst Perspectives (7 Ratings)

Ratings for Applied Digital APLD were provided by 7 analysts in the past three months, showcasing 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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $9.86, with a high estimate of $16.00 and a low estimate of $6.00. This current average has decreased by 25.13% from the previous average price target of $13.17.

Decoding Analyst Ratings: A Detailed Look

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.

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 a comprehensive view, analysts assess stocks qualitatively, spanning 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.

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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Get to Know Applied Digital Better

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.

Applied Digital's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Applied Digital displayed positive results in 3 months. As of 29 February, 2024, the company achieved a solid revenue growth rate of approximately 207.65%. 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 is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -144.96%, 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 -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 is below industry norms, indicating a sound financial structure with a ratio of 2.48.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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