Applied Digital (NASDAQ:APLD) Upgraded to Strong-Buy at UBS Group

Applied Digital (NASDAQ:APLD) was upgraded by investment analysts at UBS Group to a “strong-buy” rating in a note issued to investors on Wednesday, Zacks reports.

Several other analysts also recently weighed in on the stock. Lucid Cap Mkts raised shares of Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Wells Fargo & Company assumed coverage on shares of Applied Digital in a research note on Thursday, September 17th. They set an “overweight” rating and a $50.00 price objective for the company. Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the company a “neutral” rating in a report on Monday. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Northland Securities set a $82.00 target price on Applied Digital and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Four research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Applied Digital has a consensus rating of “Moderate Buy” and a consensus price target of $60.88.

Applied Digital Stock Down 4.6%

Shares of Applied Digital stock opened at $27.23 on Wednesday. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The company has a market cap of $7.94 billion, a P/E ratio of -30.60 and a beta of 5.72. The firm’s 50 day moving average price is $27.60 and its 200-day moving average price is $32.68. Applied Digital has a 52-week low of $19.00 and a 52-week high of $50.72.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data 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 net margin of 37.78% and a negative return on equity of 16.42%. The business had revenue of $240.35 million for the quarter, compared to analysts’ expectations of $96.85 million. During the same quarter in the prior year, the company posted ($0.24) EPS. The business’s revenue for the quarter was up 406.3% on a year-over-year basis. On average, sell-side analysts predict that Applied Digital will post -1.09 EPS for the current fiscal year.

Insider Activity

In related news, Director Richard Nottenburg sold 75,000 shares of the firm’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares of the company’s stock, valued at $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its holdings in shares of Applied Digital by 28.5% in the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after buying an additional 464 shares during the period. Krilogy Financial LLC lifted its holdings in Applied Digital by 4.1% in the second quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock valued at $531,000 after acquiring an additional 561 shares during the period. Vermillion Wealth Management Inc. increased its holdings in shares of Applied Digital by 29.4% during the 1st quarter. Vermillion Wealth Management Inc. now owns 2,563 shares of the company’s stock valued at $61,000 after purchasing an additional 583 shares in the last quarter. Envestnet Asset Management Inc. boosted its holdings in Applied Digital by 4.7% during the second quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock worth $497,000 after buying an additional 596 shares in the last quarter. Finally, Handelsbanken Fonder AB grew its position in Applied Digital by 1.0% during the second quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company’s stock valued at $2,671,000 after buying an additional 700 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital News Summary

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

• Positive Sentiment: UBS initiated coverage with a Buy rating and a $38 price target, citing constrained AI-compute supply, favorable power access and Applied Digital’s transition from cryptocurrency mining to high-performance-computing data centers. UBS views the company’s grid access and existing infrastructure as competitive advantages as AI demand accelerates. UBS initiates Applied Digital at Buy with $38 price target, citing AI infrastructure momentum
• Positive Sentiment: UBS also initiated Buy ratings on four comparable AI data-center operators, reinforcing a favorable sector outlook and potentially increasing investor interest in Applied Digital’s AI infrastructure strategy. UBS turns bullish on five AI data center stocks
• Neutral Sentiment: Applied Digital has reported approximately $36 billion of contracted long-term lease value and is highlighting strong economics on high-performance-computing projects. However, investors are still waiting for clearer evidence that the contracts will translate into cash flow and shareholder value. Should You Sell Your APLD Stock Now?
• Negative Sentiment: Analyst sentiment remains divided. A fair-value estimate was reduced from $73.36 to $68.35 amid concerns over contracted capacity, financing requirements and how much AI growth is already reflected in the valuation. Applied Digital Stock Sees Fair Value Cut As Analysts Split On AI Buildout
• Negative Sentiment: Redburn initiated coverage with a Neutral rating and a $22 target, implying substantial downside from recent trading levels. Investors also remain concerned about power and supply-chain constraints, lower yields on new deals and the capital needed to deliver the company’s backlog. APLD’s 250MW Question

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.