Applied Digital Corporation (NASDAQ:APLD) Given Consensus Rating of “Buy” by Analysts

Shares of Applied Digital Corporation (NASDAQ:APLD) have earned a consensus recommendation of “Buy” from the sixteen ratings firms that are covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, one has given a hold rating, eleven have issued a buy rating and three have issued a strong buy rating on the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $59.1111.

A number of analysts have recently issued reports on APLD shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Roth Mkm reissued a “buy” rating and issued a $65.00 price target on shares of Applied Digital in a research report on Thursday, April 23rd. B. Riley Financial reissued a “buy” rating and issued a $66.00 price target (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Citizens Jmp increased their price target on shares of Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research report on Thursday, May 21st. Finally, Lucid Cap Mkts raised shares of Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the transaction, the director owned 184,859 shares in the company, valued at $6,466,367.82. This represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,000 shares of company stock worth $1,182,175 in the last 90 days. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds have recently added to or reduced their stakes in APLD. Noble Wealth Management PBC acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Albion Financial Group UT acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Activest Wealth Management acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Ameriflex Group Inc. acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Finally, McMillan Office Inc. acquired a new position in Applied Digital in the fourth quarter worth approximately $25,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Price Performance

APLD stock opened at $40.94 on Tuesday. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. Applied Digital has a one year low of $9.02 and a one year high of $50.72. The firm has a market capitalization of $11.70 billion, a PE ratio of -55.32 and a beta of 5.69. The firm has a 50-day moving average of $36.49 and a two-hundred day moving average of $32.25.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. During the same period in the prior year, the company posted ($0.08) earnings per share. Applied Digital’s quarterly revenue was up 139.3% compared to the same quarter last year. On average, analysts forecast that Applied Digital will post -0.68 earnings per share for the current year.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Applied Digital signed a 15-year, $5.2 billion lease with a U.S.-based hyperscaler at its Delta Forge 2 campus, a major new source of contracted revenue and a strong validation of demand for its AI data center capacity. Reuters article
• Positive Sentiment: The company also announced a 210 MW lease at Delta Forge 2, expanding its “AI Factory” franchise to a fifth campus and lifting its total contracted portfolio to roughly $36 billion across five campuses. GlobeNewswire article
• Positive Sentiment: Applied Digital secured a revolving credit facility of up to $550 million, including $350 million of committed capacity and a $200 million accordion option, giving it more flexibility to fund expansion. GlobeNewswire article
• Neutral Sentiment: Analysts have recently highlighted Applied Digital’s power and grid strategy as a key driver of future growth, while Needham reiterated a Buy rating with a $66 price target. Yahoo Finance article
• Negative Sentiment: Despite the upbeat contract news, investors should remember the company has recently posted losses and negative margins, so execution risk remains high even as revenue visibility improves.

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.