The stock of Applied Digital Corporation (NASDAQ:APLD) decreased by -$0.81 on Tuesday to finish at $6.56, down -10.99 percent. The last five days have seen an average of 3,157,260 shares of common stock traded. 24 times new highs were reached in the current year, with a gain of $4.72. The average number of shares traded over the last 20 days was 6,353,025, while the average volume over the last 50 days totaled 6,911,112.
APLD stock dropped -12.88% since last month. On 08/15/23, the company’s shares reached a one-month low of $6.54. The stock touched a high of $11.62 on 06/23/23, after rallying from a low of $1.45 in 52 weeks. The price of APLD stock has risen by 256.52% or $4.72 this year, reaching a new high 24 times. Still, the stock price is down -43.55% from the 52-week high.
Insider Transactions
APLD stock investors should be aware that Applied Digital Corporation (APLD) stock had its last reported insider trading activity 8 days ago on Aug 08. On Aug 08, Director Nottenburg Richard N sold 14,820 shares at $7.74 each. This transaction resulted in the insider making $114,707. On May 17, Cummins Wes added 10,000 shares at a price of US$6.17. After the transaction, the insider now owns 2,030,686 shares. CEO; Chairman Cummins Wes had earlier bought 25,000 shares on Apr 14 for $3.50 a share. The transaction was completed for $87,500.
Valuation Metrics
Beta for the stock is 4.03. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 12.48, the price-to-book (PB) ratio of 10.58.
Financial Health
For the three months ended May 30, Applied Digital Corporation’s quick ratio was 0.40, while its current ratio was 0.40, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending May 30 is 1.29, and the total debt to equity ratio is 1.52. As far as profitability goes, gross margin for the trailing twelve months is 19.90% percent. Applied Digital Corporation’s EBITDA margin for the year ended May 30 was -66.41%, whereas its operating margin stood at -79.90% for the same period. Based on annual data, it had gross profit of $11.0 million and revenue of $55.39 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. APLD’s return on assets (ROA) during the last 12 months has been -22.80%. There was a -29.10% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -70.80%.
Earnings Surprise
According to Applied Digital Corporation’s quarterly financial report for the quarter that ended May 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $35.1 million, while revenues rose by 97.07% to $12.34 million. It was predicted that Applied Digital Corporation’s quarterly earnings would be -$0.07, but it ended up being -$0.04, beating the consensus by -75.00%. EBITDA was -$3.61 million for the quarter. At the end of Applied Digital Corporation’s most recent quarter ended May 30, its liabilities totaled 194.28 million, while its total debt was $91.81 million. Equity owned by shareholders amounts to $103.95 million.
Technical Picture
Here’s a quick look at Applied Digital Corporation’s (APLD) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 29.57%, suggesting the stock is oversold, with a 62.08% historical volatility rate.
The stochastic %K and %D were 5.69% and 6.04% respectively, while the average true range (ATR) was 0.75. Based on the 14-day stochastic reading of 0.49%, the RSI (14) reading is 36.79%. On the 9-day MACD Oscillator, the stock is at -0.42, and the 14-day reading is at -1.10.
Analyst Ratings
In its analyst report released on December 22, 2022, H.C. Wainwright began covering Applied Digital Corporation (NASDAQ: APLD). The stock was rated as a Buy by the brokerage firm.
