Applied Digital (NASDAQ:APLD) Stock Rating Upgraded by Zacks Research

Applied Digital (NASDAQ:APLD) was upgraded by equities researchers at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

APLD has been the topic of a number of other reports. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Craig Hallum boosted their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Morgan Stanley assumed coverage on Applied Digital in a research report on Thursday, July 23rd. They issued a “buy” rating and a $36.50 target price on the stock. Finally, Citizens Jmp lifted their price target on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Three equities research 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Digital presently has an average rating of “Buy” and a consensus price target of $67.15.

Applied Digital Stock Performance

APLD opened at $26.62 on Monday. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The company has a market cap 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 firm’s fifty day simple moving average is $38.34 and its two-hundred day simple moving average is $34.52.

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

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction 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 legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in APLD. AQR Capital Management LLC grew its position in shares of Applied Digital by 84.8% in the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock valued at $106,000 after purchasing an additional 8,692 shares in the last quarter. NewEdge Advisors LLC lifted its position in Applied Digital by 239.1% during the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after buying an additional 23,457 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in Applied Digital by 113.3% during the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock worth $37,000 after buying an additional 3,542 shares in the last quarter. Strs Ohio acquired a new position in Applied Digital during the first quarter worth $71,000. Finally, Cetera Investment Advisers boosted its stake in Applied Digital by 61.0% during the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock worth $621,000 after buying an additional 23,360 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Applied Digital

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

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.