Is Applied Digital Stock a Good Investment?
Applied Digital Investment Advice | APLD |
- Examine Applied Digital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Applied Digital's leadership team and their track record. Good management can help Applied Digital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Applied Digital's business and its evolving consumer preferences.
- Compare Applied Digital's performance and market position to its competitors. Analyze how Applied Digital is positioned in terms of product offerings, innovation, and market share.
- Check if Applied Digital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Applied Digital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Applied Digital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Applied Digital is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Moderately volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Applied Digital Stock
Researching Applied Digital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 21.0% of the company shares are held by company insiders. The company recorded a loss per share of 1.23. Applied Digital had not issued any dividends in recent years. The entity had 1:6 split on the 13th of April 2022.
To determine if Applied Digital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Applied Digital's research are outlined below:
| Applied Digital had very high historical volatility over the last 90 days | |
| Applied Digital currently holds 427.81 M in liabilities with Debt to Equity (D/E) ratio of 0.28, which may suggest the company is not taking enough advantage from borrowing. Applied Digital has a current ratio of 0.85, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Applied Digital's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the previous year's revenue of 165.57 M. Net Loss for the year was (149.27 M) with loss before overhead, payroll, taxes, and interest of (957 K). | |
| About 65.0% of Applied Digital shares are held by institutions such as insurance companies | |
| Latest headline from globenewswire.com: Applied Digital Sets Fiscal Second Quarter 2025 Conference Call for Tuesday, January 14, 2025, at 500 p.m. Eastern Time |
Applied Digital Quarterly Accounts Payable |
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Applied Digital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Applied Digital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Applied Digital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 4th of April 2024 Upcoming Quarterly Report | View | |
| 22nd of July 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 22nd of July 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of May 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Applied Digital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Applied Digital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-07-24 | 2023-05-31 | -0.04 | -0.07 | -0.03 | 75 | ||
2023-04-06 | 2023-02-28 | -0.05 | -0.08 | -0.03 | 60 | ||
2023-10-09 | 2023-08-31 | -0.04 | -0.1 | -0.06 | 150 | ||
2022-10-11 | 2022-08-31 | -0.1 | -0.04 | 0.06 | 60 | ||
2022-08-25 | 2022-05-31 | -0.13 | -0.04 | 0.09 | 69 | ||
2024-01-16 | 2023-11-30 | 0.01 | -0.1 | -0.11 | 1100 | ||
2024-10-09 | 2024-08-31 | -0.29 | -0.15 | 0.14 | 48 | ||
2024-04-11 | 2024-02-29 | -0.1 | -0.32 | -0.22 | 220 |
Applied Digital Target Price Consensus
Applied target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Applied Digital's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 8 | Strong Buy |
Most Applied analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Applied stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Applied Digital, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationApplied Digital Target Price Projection
Applied Digital's current and average target prices are 7.78 and 15.21, respectively. The current price of Applied Digital is the price at which Applied Digital is currently trading. On the other hand, Applied Digital's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Applied Digital Market Quote on 2nd of January 2025
Target Price
Analyst Consensus On Applied Digital Target Price
Applied Digital Analyst Ratings
Applied Digital's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Applied Digital stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Applied Digital's financials, market performance, and future outlook by experienced professionals. Applied Digital's historical ratings below, therefore, can serve as a valuable tool for investors.Know Applied Digital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Applied Digital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Applied Digital backward and forwards among themselves. Applied Digital's institutional investor refers to the entity that pools money to purchase Applied Digital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Citadel Advisors Llc | 2024-09-30 | 2.5 M | Mirae Asset Global Etfs Holdings Ltd. | 2024-09-30 | 2.4 M | State Street Corp | 2024-09-30 | 2.3 M | Van Eck Associates Corporation | 2024-09-30 | 2.1 M | Plustick Management Llc | 2024-09-30 | 2 M | Bank Of America Corp | 2024-09-30 | 1.9 M | Moore Capital Management, Lp | 2024-09-30 | 1.9 M | Ing Investment Management Llc | 2024-09-30 | 1.8 M | Pertento Partners Llp | 2024-09-30 | 1.7 M | Hood River Capital Management Llc | 2024-09-30 | 13.7 M | Clearfield Capital Management Lp | 2024-09-30 | 12.1 M |
Applied Digital's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.61 B.Market Cap |
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Applied Digital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (8.06) | (7.65) | |
| Return On Capital Employed | 7.84 | 8.23 | |
| Return On Assets | (8.06) | (7.65) | |
| Return On Equity | 7.84 | 8.23 |
Determining Applied Digital's profitability involves analyzing its financial statements and using various financial metrics to determine if Applied Digital is a good buy. For example, gross profit margin measures Applied Digital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Applied Digital's profitability and make more informed investment decisions.
Please note, the presentation of Applied Digital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Applied Digital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Applied Digital's management manipulating its earnings.
Evaluate Applied Digital's management efficiency
Applied Digital has return on total asset (ROA) of (0.0883) % which means that it has lost $0.0883 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.6686) %, meaning that it created substantial loss on money invested by shareholders. Applied Digital's management efficiency ratios could be used to measure how well Applied Digital manages its routine affairs as well as how well it operates its assets and liabilities. At present, Applied Digital's Return On Equity is projected to slightly grow based on the last few years of reporting. At present, Applied Digital's Total Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 884.6 M, whereas Return On Tangible Assets are projected to grow to (7.65).| Last Reported | Projected for Next Year | ||
| Enterprise Value Over EBITDA | (19.47) | (20.44) | |
| Price Book Value Ratio | -5.8 K | -5.5 K | |
| Enterprise Value Multiple | (19.47) | (20.44) | |
| Price Fair Value | -5.8 K | -5.5 K | |
| Enterprise Value | 14.8 M | 14 M |
The decision-making processes within Applied Digital are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 4.517 |
Basic technical analysis of Applied Stock
As of the 2nd of January, Applied Digital shows the Risk Adjusted Performance of 0.0202, downside deviation of 5.53, and Mean Deviation of 5.25. Applied Digital technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Applied Digital maximum drawdown, and the relationship between the information ratio and downside variance to decide if Applied Digital is priced correctly, providing market reflects its regular price of 7.78 per share. Given that Applied Digital has jensen alpha of 0.0794, we suggest you to validate Applied Digital's prevailing market performance to make sure the company can sustain itself at a future point.Applied Digital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Applied Digital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Applied Digital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Applied Digital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Applied Digital's Outstanding Corporate Bonds
Applied Digital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Applied Digital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Applied bonds can be classified according to their maturity, which is the date when Applied Digital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Applied Digital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Applied Digital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0202 | |||
| Market Risk Adjusted Performance | 0.077 | |||
| Mean Deviation | 5.25 | |||
| Semi Deviation | 5.44 | |||
| Downside Deviation | 5.53 | |||
| Coefficient Of Variation | 7040.94 | |||
| Standard Deviation | 6.36 | |||
| Variance | 40.48 | |||
| Information Ratio | 0.0125 | |||
| Jensen Alpha | 0.0794 | |||
| Total Risk Alpha | 0.0738 | |||
| Sortino Ratio | 0.0144 | |||
| Treynor Ratio | 0.067 | |||
| Maximum Drawdown | 28.97 | |||
| Value At Risk | (8.80) | |||
| Potential Upside | 10.73 | |||
| Downside Variance | 30.57 | |||
| Semi Variance | 29.62 | |||
| Expected Short fall | (6.07) | |||
| Skewness | 0.5277 | |||
| Kurtosis | (0.31) |
| Risk Adjusted Performance | 0.0202 | |||
| Market Risk Adjusted Performance | 0.077 | |||
| Mean Deviation | 5.25 | |||
| Semi Deviation | 5.44 | |||
| Downside Deviation | 5.53 | |||
| Coefficient Of Variation | 7040.94 | |||
| Standard Deviation | 6.36 | |||
| Variance | 40.48 | |||
| Information Ratio | 0.0125 | |||
| Jensen Alpha | 0.0794 | |||
| Total Risk Alpha | 0.0738 | |||
| Sortino Ratio | 0.0144 | |||
| Treynor Ratio | 0.067 | |||
| Maximum Drawdown | 28.97 | |||
| Value At Risk | (8.80) | |||
| Potential Upside | 10.73 | |||
| Downside Variance | 30.57 | |||
| Semi Variance | 29.62 | |||
| Expected Short fall | (6.07) | |||
| Skewness | 0.5277 | |||
| Kurtosis | (0.31) |
Consider Applied Digital's intraday indicators
Applied Digital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Applied Digital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0887 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 7.87 | |||
| Day Typical Price | 7.84 | |||
| Market Facilitation Index | 0.73 | |||
| Price Action Indicator | (0.09) |
Applied Digital Corporate Filings
F4 | 31st of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 4th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 27th of November 2024 Other Reports | ViewVerify | |
| 26th of November 2024 Other Reports | ViewVerify |
Applied Stock media impact
Far too much social signal, news, headlines, and media speculation about Applied Digital that are available to investors today. That information is available publicly through Applied media outlets and privately through word of mouth or via Applied internal channels. However, regardless of the origin, that massive amount of Applied data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Applied Digital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Applied Digital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Applied Digital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Applied Digital alpha.
Applied Digital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Applied Digital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Applied Digital Corporate Management
| Regina Ingel | Chief Officer | Profile | |
| Michael Maniscalco | Ex Technology | Profile | |
| David Rench | Chief Officer | Profile | |
| Chris Jackson | Senior Operations | Profile | |
| Nick Phillips | Executive Acquisitions | Profile | |
| Saidal Mohmand | Ex Fin | Profile | |
| Brad Barton | Executive Development | Profile |
Already Invested in Applied Digital?
The danger of trading Applied Digital is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Applied Digital is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Applied Digital. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Applied Digital is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Applied Digital is a strong investment it is important to analyze Applied Digital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Applied Digital's future performance. For an informed investment choice regarding Applied Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Digital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For information on how to trade Applied Stock refer to our How to Trade Applied Stock guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Digital. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.23) | Revenue Per Share | Quarterly Revenue Growth 0.671 | Return On Assets | Return On Equity |
The market value of Applied Digital is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Digital's value that differs from its market value or its book value, called intrinsic value, which is Applied Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Digital's market value can be influenced by many factors that don't directly affect Applied Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Applied Digital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Applied Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.