Applied Digital (NASDAQ:APLD) Lowered to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Applied Digital (NASDAQ:APLD) from a hold rating to a strong sell rating in a research note released on Monday morning,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. Needham & Company LLC increased their target price on shares of Applied Digital from $66.00 to $83.00 and gave the company a “buy” rating in a research note on Tuesday. Compass Point reiterated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. B. Riley Financial reiterated a “buy” rating and issued a $66.00 target price (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Lake Street Capital increased their target price on shares of Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $67.67.

Applied Digital Stock Up 2.4%

APLD stock opened at $41.91 on Monday. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. Applied Digital has a 52-week low of $9.02 and a 52-week high of $50.72. The company has a 50-day moving average of $36.85 and a two-hundred day moving average of $32.38. The stock has a market capitalization of $11.98 billion, a price-to-earnings ratio of -56.63 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm had revenue of $108.55 million for the quarter, compared to the consensus estimate of $78.47 million. During the same quarter last year, the company earned ($0.08) earnings per share. The firm’s revenue was up 139.3% on a year-over-year basis. As a group, equities research analysts anticipate that Applied Digital will post -0.68 EPS for the current year.

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock valued at $1,182,175 in the last quarter. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Teachers Retirement System of The State of Kentucky bought a new position in Applied Digital in the 3rd quarter valued at $994,000. MRA Advisory Group bought a new position in Applied Digital in the 3rd quarter valued at $978,000. Vanguard Group Inc. boosted its position in Applied Digital by 23.2% in the 3rd quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock valued at $406,547,000 after buying an additional 3,339,062 shares during the last quarter. Cannon Capital Management Inc. acquired a new stake in Applied Digital during the 4th quarter worth $3,635,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in Applied Digital during the 4th quarter worth $2,674,000. 65.67% of the stock is currently owned by institutional investors.

More Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital signed a 15-year, 210 MW lease with a U.S.-based investment-grade hyperscaler at its Delta Forge 2 campus, adding about $5.2 billion in contracted revenue and bringing total contracted portfolio value to roughly $36 billion across five campuses. Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
• Positive Sentiment: The company also signed a third hyperscaler lease in six weeks, further validating demand for its AI infrastructure and reinforcing visibility into future revenue. B. Riley pins APLD stock price at $66 after new lease signing
• Positive Sentiment: Analysts turned more bullish, with multiple firms raising price targets on the stock after the new lease announcements, signaling higher expected upside from current levels. Applied Digital Stock In Focus: Company Signs Fifth AI Campus Deal, Raises $1.59 Billion
• Neutral Sentiment: Applied Digital announced a $1.59 billion senior secured notes offering to fund the fourth building at Polaris Forge 1; while the debt raise supports growth, it also adds leverage and introduces financing execution risk. Applied Digital Announces Pricing of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
• Neutral Sentiment: The stock was also added to a Zacks Strong Sell list, which may temper enthusiasm, though this is outweighed today by the large contract wins and analyst upgrades. New Strong Sell Stocks for June 9th

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.