The Applied Digital Corporation (NASDAQ: APLD) Stock Price: Is It Overvalued?

Applied Digital Corporation (NASDAQ:APLD) shares, rose in value on Thursday, 05/25/23, with the stock price down by -2.42% to the previous day’s close as strong demand from buyers drove the stock to $8.87.

Actively observing the price movement in the last trading, the stock closed the session at $9.09, falling within a range of $8.15 and $10.25. The value of beta (5-year monthly) was 4.68. Referring to stock’s 52-week performance, its high was $9.37, and the low was $0.85. On the whole, APLD has fluctuated by 184.29% over the past month.

With the market capitalization of Applied Digital Corporation currently standing at about $725.83 million, investors are eagerly awaiting this quarter’s results, scheduled for Apr 06, 2023. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.03, which is expected to increase to $0.11 for fiscal year -$0.44 and then to about $0.38 by fiscal year 2024. Data indicates that the EPS growth is expected to be -7.30% in 2024, while the next year’s EPS growth is forecast to be 186.40%.

Analysts have estimated the company’s revenue for the quarter at $30.28 million, with a low estimate of $20.6 million and a high estimate of $48.94 million. According to the average forecast, sales growth in current quarter could jump up 302.70%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $60.5 million, representing an increase of 607.70% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that APLD’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

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The stock’s technical analysis shows that the PEG ratio is about 0, with the price of APLD currently trading nearly 82.46% and 152.42% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 79.22, while the 7-day volatility ratio is showing 21.89% which for the 30-day chart, stands at 15.63%. Furthermore, Applied Digital Corporation (APLD)’s beta value is 3.98, and its average true range (ATR) is 0.96.

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Data on historical trading for Applied Digital Corporation (NASDAQ:APLD) indicates that the trading volumes over the past 10 days have averaged 15.68 million and over the past 3 months, they’ve averaged 3.09 million. According to company’s latest data on outstanding shares, there are 94.12 million shares outstanding.

Nearly 8.00% of Applied Digital Corporation’s shares belong to company insiders and institutional investors own 25.20% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 2.83 million shares as on Apr 27, 2023, resulting in a short ratio of 3.21. According to the data, the short interest in Applied Digital Corporation (APLD) stood at 2.99% of shares outstanding as of Apr 27, 2023; the number of short shares registered in Mar 30, 2023 reached 2.33 million. The stock has risen by 382.07% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the APLD stock heading into the next quarter.