Applied Digital Stock Buy Hold or Sell Recommendation

APLD Stock  USD 7.32  0.63  9.42%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Applied Digital is 'Strong Sell'. Macroaxis provides Applied Digital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding APLD positions.
  
Check out Applied Digital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Applied Stock refer to our How to Trade Applied Stock guide.
Note, we conduct extensive research on individual companies such as Applied and provide practical buy, sell, or hold advice based on investors' constraints. 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.

Execute Applied Digital Buy or Sell Advice

The Applied recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Applied Digital. Macroaxis does not own or have any residual interests in Applied Digital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Applied Digital's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Applied DigitalBuy Applied Digital
Strong Sell

Market Performance

ModestDetails

Volatility

Relatively riskyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Applied Digital has a Mean Deviation of 5.78, Semi Deviation of 7.11, Standard Deviation of 7.47, Variance of 55.73, Downside Variance of 52.12 and Semi Variance of 50.52
We provide trade advice to complement the prevailing expert consensus on Applied Digital. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Applied Digital is not overpriced, please confirm all Applied Digital fundamentals, including its number of shares shorted, ebitda, current ratio, as well as the relationship between the price to sales and cash per share . Given that Applied Digital has a number of shares shorted of 56.49 M, we suggest you to validate Applied Digital market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Applied Digital Trading Alerts and Improvement Suggestions

Applied Digital is way too risky over 90 days horizon
Applied Digital appears to be risky and price may revert if volatility continues
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 profit before overhead, payroll, taxes, and interest of 5.78 M.
About 66.0% of Applied Digital shares are held by institutions such as insurance companies
Latest headline from news.google.com: Applied Digital Trading 7.8 percent Higher - Should You Buy - MarketBeat

Applied Digital Returns Distribution Density

The distribution of Applied Digital's historical returns is an attempt to chart the uncertainty of Applied Digital's future price movements. The chart of the probability distribution of Applied Digital daily returns describes the distribution of returns around its average expected value. We use Applied Digital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Applied Digital returns is essential to provide solid investment advice for Applied Digital.
Mean Return
0.10
Value At Risk
-8.8
Potential Upside
10.99
Standard Deviation
7.47
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Applied Digital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Applied Stock Institutional Investors

Shares
Citadel Advisors Llc2024-09-30
2.5 M
Mirae Asset Global Etfs Holdings Ltd.2024-09-30
2.4 M
State Street Corp2024-09-30
2.3 M
Van Eck Associates Corporation2024-09-30
2.1 M
Plustick Management Llc2024-09-30
M
Bank Of America Corp2024-09-30
1.9 M
Moore Capital Management, Lp2024-09-30
1.9 M
Ing Investment Management Llc2024-09-30
1.8 M
Pertento Partners Llp2024-09-30
1.7 M
Hood River Capital Management Llc2024-09-30
13.7 M
Clearfield Capital Management Lp2024-09-30
12.1 M
Note, although Applied Digital's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Applied Digital Cash Flow Accounts

202020212022202320242025 (projected)
Free Cash Flow(3.4M)(59.1M)(72.5M)(128.0M)(115.2M)(109.5M)
Other Non Cash Items236K(9.5M)521K60.3M69.3M72.8M
Net Income(568K)(22.5M)(45.6M)(149.3M)(134.3M)(127.6M)
End Period Cash Flow11.8M46.3M43.6M31.7M36.4M38.3M

Applied Digital Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Applied Digital or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Applied Digital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Applied stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.0013
β
Beta against Dow Jones1.07
σ
Overall volatility
7.63
Ir
Information ratio 0.0006

Applied Digital Volatility Alert

Applied Digital is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Applied Digital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Applied Digital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Applied Digital Implied Volatility

Applied Digital's implied volatility exposes the market's sentiment of Applied Digital stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Applied Digital's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Applied Digital stock will not fluctuate a lot when Applied Digital's options are near their expiration.

Applied Digital Fundamentals Vs Peers

Comparing Applied Digital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Applied Digital's direct or indirect competition across all of the common fundamentals between Applied Digital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Applied Digital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Applied Digital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Applied Digital by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Applied Digital to competition
FundamentalsApplied DigitalPeer Average
Return On Equity-0.67-0.31
Return On Asset-0.0883-0.14
Profit Margin(0.75) %(1.27) %
Operating Margin(0.24) %(5.51) %
Current Valuation2.16 B16.62 B
Shares Outstanding222.9 M571.82 M
Shares Owned By Insiders21.13 %10.09 %
Shares Owned By Institutions66.46 %39.21 %
Number Of Shares Shorted56.49 M4.71 M
Price To Earning(0.03) X28.72 X
Price To Book3.79 X9.51 X
Price To Sales8.66 X11.42 X
Revenue165.57 M9.43 B
Gross Profit5.78 M27.38 B
EBITDA(43.38 M)3.9 B
Net Income(149.27 M)570.98 M
Cash And Equivalents40.83 M2.7 B
Cash Per Share0.44 X5.01 X
Total Debt427.81 M5.32 B
Debt To Equity0.28 %48.70 %
Current Ratio0.87 X2.16 X
Book Value Per Share0.90 X1.93 K
Cash Flow From Operations13.79 M971.22 M
Short Ratio2.87 X4.00 X
Earnings Per Share(1.90) X3.12 X
Target Price11.56
Number Of Employees15018.84 K
Beta4.52-0.15
Market Capitalization1.65 B19.03 B
Total Asset762.87 M29.47 B
Retained Earnings(249.99 M)9.33 B
Working Capital(355.27 M)1.48 B
Current Asset1.68 M9.34 B
Note: Disposition of 50000 shares by Nottenburg Richard N of Applied Blockchain at 9.2 subject to Rule 16b-3 [view details]

Applied Digital Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Applied . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Applied Digital Buy or Sell Advice

When is the right time to buy or sell Applied Digital? Buying financial instruments such as Applied Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Applied Digital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Information Technology ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Information Technology ETFs theme has 51 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Information Technology ETFs Theme or any other thematic opportunities.
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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 Applied Digital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Applied Stock refer to our How to Trade Applied Stock guide.
You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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
(1.90)
Revenue Per Share
1.505
Quarterly Revenue Growth
0.671
Return On Assets
(0.09)
Return On Equity
(0.67)
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.
Please note, there is a significant difference between Applied Digital's value and its price as these two are different measures arrived at by different 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.