Applied Digital (NASDAQ:APLD) Stock Gets Price Target Cut from Morgan Stanley

Applied Digital (NASDAQ:APLD) had its target price cut by Morgan Stanley from $41.00 to $25.00 in a report issued on Monday,Benzinga reports. They currently have an equal weight rating on the stock.

Other research analysts also recently issued research reports about the company. Wall Street Zen downgraded Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. B. Riley Financial decreased their price target on shares of Applied Digital from $75.00 to $51.00 and set a “buy” rating for the company in a research note on Friday, October 30th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research report on Monday, October 19th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Applied Digital presently has a consensus rating of “Moderate Buy” and an average target price of $56.42.

Applied Digital Stock Performance

NASDAQ APLD opened at $17.91 on Monday. The company has a fifty day moving average of $22.44 and a two-hundred day moving average of $30.56. The company has a market capitalization of $5.42 billion, a PE ratio of -10.92 and a beta of 5.58. Applied Digital has a 1 year low of $13.11 and a 1 year high of $50.72. The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The business had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. During the same quarter in the previous year, the firm earned ($0.03) earnings per share. The business’s revenue was up 367.8% compared to the same quarter last year. As a group, analysts expect that Applied Digital will post -2.17 earnings per share for the current year.

Insider Activity

In related news, CEO Wes Cummins acquired 55,803 shares of the company’s stock in a transaction that occurred on Friday, October 16th. The stock was purchased at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the transaction, the chief executive officer owned 5,874,453 shares in the company, valued at $105,975,132.12. This trade represents a 0.96% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, President Jason Gechen Zhang bought 300,000 shares of the business’s stock in a transaction that occurred on Friday, October 16th. The stock was purchased at an average cost of $18.86 per share, with a total value of $5,658,000.00. Following the purchase, the president directly owned 2,839,227 shares in the company, valued at $53,547,821.22. The trade was a 11.81% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently made changes to their positions in the business. Bartlett & CO. Wealth Management LLC lifted its position in Applied Digital by 244.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock worth $29,000 after buying an additional 855 shares during the period. FNY Investment Advisers LLC purchased a new stake in Applied Digital in the 2nd quarter valued at about $37,000. Advisors Asset Management Inc. purchased a new stake in Applied Digital in the 3rd quarter valued at about $43,000. Root Financial Partners LLC acquired a new position in shares of Applied Digital during the 3rd quarter valued at about $52,000. Finally, Global Assets Advisory LLC acquired a new position in shares of Applied Digital during the 1st quarter valued at about $53,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Trending Headlines about Applied Digital

Investors following APLD have been watching these headlines:

• Positive Sentiment: A proposed Louisiana agreement could support up to $4.6 billion in bonds for Applied Digital’s AI campus, with Meta’s lease potentially backing the financing. If completed, this could help fund campus development; the proposal is not a finalized financing deal. Article: Meta’s Lease Could Back Up to $4.6 Billion in Louisiana Bonds
• Negative Sentiment: CoreWeave represents an estimated $11 billion of lease-related exposure for Applied Digital. Reports that CoreWeave’s unsecured debt is under pressure raise concerns about tenant creditworthiness and the durability of expected lease revenue. Article: Applied Digital Carries $11 Billion in CoreWeave Exposure
• Negative Sentiment: Analyst commentary has emphasized Applied Digital’s high leverage and financing needs, while Morgan Stanley reportedly cut its price target. These concerns may limit the effect of sector-wide optimism, particularly if borrowing costs remain high. Article: Applied Digital Leverage Risks Can No Longer Be Ignored Article: Morgan Stanley Cuts Applied Digital Price Target

About Applied Digital

Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.