Applied Digital Corporation (NASDAQ:APLD) Receives $70.56 Average PT from Analysts

Shares of Applied Digital Corporation (NASDAQ:APLD) have earned an average rating of “Moderate Buy” from the seventeen ratings firms that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, twelve have assigned a buy recommendation and three have given a strong buy recommendation to the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $67.15.

APLD has been the subject of a number of analyst reports. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Lucid Cap Mkts upgraded Applied Digital to a “strong-buy” rating in a research note on Wednesday, May 27th. Northland Securities set a $82.00 target price on Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Morgan Stanley initiated coverage on Applied Digital in a research report on Thursday, July 23rd. They set a “buy” rating and a $36.50 target price for the company. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research note on Tuesday, June 9th.

Applied Digital Price Performance

NASDAQ:APLD opened at $26.62 on Wednesday. The company has a 50-day moving average of $38.34 and a 200-day moving average of $34.52. The company has a market capitalization of $7.61 billion, a price-to-earnings ratio of -29.91 and a beta of 5.67. Applied Digital has a 52 week low of $9.79 and a 52 week high of $50.72. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38.

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

Insider Activity

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently made changes to their positions in the company. Axxcess Wealth Management LLC bought a new position in Applied Digital during the 2nd quarter valued at about $305,000. Atria Investments Inc acquired a new stake in shares of Applied Digital during the second quarter worth approximately $224,000. Creative Financial Designs Inc. ADV increased its holdings in shares of Applied Digital by 691.8% during the second quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock worth $57,000 after buying an additional 1,342 shares in the last quarter. Kestra Private Wealth Services LLC raised its stake in shares of Applied Digital by 14.5% in the second quarter. Kestra Private Wealth Services LLC now owns 79,507 shares of the company’s stock valued at $2,966,000 after acquiring an additional 10,084 shares during the last quarter. Finally, ProCore Advisors LLC bought a new position in shares of Applied Digital in the second quarter valued at approximately $286,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Fiscal fourth-quarter revenue surged approximately 407% year over year to about $258.7 million, exceeding analyst expectations. Growth was driven by high-performance computing, AI data-center demand and tenant fit-out services. Applied Digital Tops Quarterly Revenue Estimates
• Positive Sentiment: Management highlighted expanding demand from AI customers, including CoreWeave, and reported approximately 1.4 gigawatts of contracted AI capacity across five campuses. Contracted lease value reportedly reached $36 billion, supporting the company’s growth narrative. Applied Digital Expects $1 Billion NOI Run Rate
• Positive Sentiment: The company is targeting a $1 billion annual net operating income run rate within roughly one year and said it secured financing intended to support additional AI data-center expansion. Needham reaffirmed its Buy rating and assigned an $83 price target, providing bullish analyst support. Needham Reiterates Buy Rating
• Neutral Sentiment: Adjusted quarterly earnings were reported at approximately $0.04 per share, ahead of expectations for a loss, but the result benefited in part from tenant fit-out activity and does not eliminate the company’s ongoing investment requirements. Applied Digital Revenue Quadruples
• Negative Sentiment: On a GAAP basis, Applied Digital reported a loss of $0.39 per share, substantially worse than the expected $0.09 loss. The company continues to post negative net margins and negative return on equity. Applied Digital Earnings Results
• Negative Sentiment: Investors remain concerned about financing needs, leverage and execution risk as Applied Digital builds expensive AI campuses. These concerns may be limiting the stock’s reaction despite the strong revenue growth.

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.