Applied Digital (NASDAQ:APLD) Rating Increased to Hold at Zacks Research

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

A number of other brokerages also recently commented on APLD. Compass Point restated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research note on Tuesday, June 9th. Lake Street Capital boosted their price target on Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Roth Capital reissued a “buy” rating and issued a $65.00 price objective on shares of Applied Digital in a research note on Thursday, April 23rd. Finally, B. Riley Financial reissued a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Applied Digital currently has an average rating of “Buy” and a consensus target price of $67.15.

Applied Digital Trading Up 0.9%

NASDAQ APLD opened at $26.62 on Monday. The company’s 50-day moving average price is $38.34 and its 200-day moving average price is $34.52. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market cap of $7.61 billion, a PE ratio of -29.91 and a beta of 5.67. Applied Digital has a 12 month low of $9.79 and a 12 month high of $50.72.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 17.53% and a negative net margin of 37.78%.The company had revenue of $240.35 million during the quarter, compared to analysts’ expectations of $96.85 million. During the same period in the prior year, the business earned ($0.24) EPS. The company’s quarterly revenue was up 406.3% on a year-over-year basis. Equities research analysts forecast that Applied Digital will post -1.1 earnings per share for the current year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors have recently bought and sold shares of the business. Axxcess Wealth Management LLC purchased a new stake in Applied Digital during the second quarter worth $305,000. Atria Investments Inc purchased a new position in shares of Applied Digital in the 2nd quarter valued at $224,000. Creative Financial Designs Inc. ADV increased its holdings in shares of Applied Digital by 691.8% in the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock valued at $57,000 after acquiring an additional 1,342 shares during the period. Kestra Private Wealth Services LLC raised its position in shares of Applied Digital by 14.5% in the 2nd quarter. Kestra Private Wealth Services LLC now owns 79,507 shares of the company’s stock worth $2,966,000 after acquiring an additional 10,084 shares in the last quarter. Finally, ProCore Advisors LLC bought a new position in shares of Applied Digital in the 2nd quarter worth $286,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Key Applied Digital News

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

• Positive Sentiment: Exceptional revenue growth and adjusted earnings beat: Fiscal fourth-quarter revenue reached approximately $258.7 million, up about 407% year over year and well above Wall Street expectations. Non-GAAP EPS was $0.04, compared with analysts’ anticipated loss, supported by HPC hosting and tenant fit-out services. Applied Digital revenue quadruples on AI data center demand
• Positive Sentiment: Large contracted backlog improves visibility: Management said contracted lease value reached $36 billion, up 125% year over year, with investment-grade hyperscalers among its customers. Contracted AI capacity totaled roughly 1.4 gigawatts across five campuses, supporting expectations for substantial future cash flow. Applied Digital expects $1B NOI run rate
• Positive Sentiment: Ambitious expansion targets and analyst support: Applied Digital is targeting a $1 billion annual net operating income run rate within one year and has secured financing for future campuses. Needham reaffirmed its Buy rating with an $83 price target, reflecting confidence in the company’s AI data center pipeline. Needham reiterates Buy rating
• Neutral Sentiment: Power availability is becoming the main constraint: Management is pursuing new natural-gas generation to secure electricity for additional AI campuses. Success could create a competitive advantage, but delays or shortages could limit growth.
• Negative Sentiment: GAAP profitability and balance-sheet concerns remain: The company reported a quarterly GAAP loss of $0.39 per share, missing the consensus loss estimate, while maintaining negative net margins and return on equity. Elevated debt and ongoing capital requirements for data center construction could pressure cash flow and increase financing risk. Applied Digital earnings report

Applied Digital Company Profile

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.