Applied Digital (NASDAQ:APLD) Upgraded by Zacks Research to “Hold” Rating

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

APLD has been the topic of a number of other research reports. Roth Capital restated a “buy” rating and set a $65.00 target price on shares of Applied Digital in a research report on Thursday, April 23rd. Morgan Stanley began coverage on shares of Applied Digital in a research report on Thursday, July 23rd. They issued a “buy” rating and a $36.50 price target for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Finally, Lake Street Capital raised their price objective on Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $67.15.

Applied Digital Trading Up 0.9%

Shares of Applied Digital stock opened at $26.62 on Monday. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The firm has a 50-day moving average of $38.34 and a 200-day moving average of $34.52. Applied Digital has a 52-week low of $9.79 and a 52-week high of $50.72. The stock has a market cap of $7.61 billion, a PE ratio of -29.91 and a beta of 5.67.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates 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 business had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. During the same period in the prior year, the business posted ($0.24) earnings per share. Applied Digital’s revenue was up 406.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Applied Digital will post -1.1 EPS for the current year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the firm’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 sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in APLD. Axxcess Wealth Management LLC acquired a new stake in Applied Digital in the second quarter valued at approximately $305,000. Atria Investments Inc bought a new stake in shares of Applied Digital during the second quarter worth $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 increased its holdings in shares of Applied Digital by 14.5% during the second quarter. Kestra Private Wealth Services LLC now owns 79,507 shares of the company’s stock worth $2,966,000 after buying an additional 10,084 shares in the last quarter. Finally, ProCore Advisors LLC acquired a new position in shares of Applied Digital during the second quarter worth $286,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital News Roundup

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.