Needham & Company LLC Has Lowered Expectations for Applied Digital (NASDAQ:APLD) Stock Price

Key Points

• Needham lowered Applied Digital’s price target from $83 to $70 but maintained a “buy” rating, implying nearly 194% upside from the reported $23.81 share price.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and average target of $60.27, though price targets range widely from $22 to $82.
• Applied Digital’s revenue surged and its quarterly loss beat expectations, but profitability and leverage remain key risks, with a $184.1 million GAAP loss and approximately $6.4 billion in debt.

Applied Digital (NASDAQ:APLD - Get Free Report) had its target price reduced by equities researchers at Needham & Company LLC from $83.00 to $70.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 193.99% from the stock's current price.

Several other equities analysts have also recently commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Northland Securities set a $82.00 price target on shares of Applied Digital and gave the stock an "outperform" rating in a report on Wednesday, June 17th. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the stock a "neutral" rating in a research report on Monday, September 21st. UBS Group initiated coverage on Applied Digital in a research note on Wednesday, September 23rd. They set a "buy" rating and a $38.00 price objective for the company. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $55.00 target price on shares of Applied Digital in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Applied Digital has an average rating of "Moderate Buy" and an average target price of $60.27.

Applied Digital Stock Performance

Shares of APLD stock opened at $23.81 on Thursday. The firm's 50 day moving average is $27.15 and its 200 day moving average is $32.54. The stock has a market capitalization of $6.94 billion, a P/E ratio of -26.75 and a beta of 5.99. Applied Digital has a 12 month low of $19.00 and a 12 month high of $50.72. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.30) by $0.29. The business had revenue of $300.39 million for the quarter, compared to analysts' expectations of $116.29 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business's revenue for the quarter was up 367.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.03) EPS. On average, sell-side analysts anticipate that Applied Digital will post -1.09 earnings per share for the current year.

Insider Transactions at Applied Digital

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

Hedge Funds Weigh In On Applied Digital

Large investors have recently modified their holdings of the company. Two Seas Capital LP purchased a new stake in Applied Digital in the third quarter worth approximately $1,218,000. Envestnet Asset Management Inc. lifted its holdings in shares of Applied Digital by 4.7% in the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company's stock worth $497,000 after acquiring an additional 596 shares during the last quarter. WINTON GROUP Ltd bought a new position in shares of Applied Digital during the 2nd quarter valued at $209,000. Engineers Gate Manager LP purchased a new position in Applied Digital in the 2nd quarter worth $4,350,000. Finally, Integrated Wealth Concepts LLC bought a new position in shares of Applied Digital during the second quarter valued at about $265,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital News Roundup

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

• Positive Sentiment: Revenue substantially exceeded expectations. Fiscal Q1 revenue rose 322% year over year to $341.9 million, while several reports cited adjusted revenue of approximately $300.4 million versus estimates near $111 million–$116 million. Adjusted loss of $0.01 per share also beat expectations for a loss of roughly $0.26–$0.30. Applied Digital Reports Fiscal First Quarter 2027 Results
• Positive Sentiment: AI data-center demand is translating into growth and contracted visibility. Applied Digital reported approximately 1.41 gigawatts of leased critical IT load across five campuses and about $36 billion in contracted revenue over initial lease terms. Data Center Hosting generated $37.8 million of revenue and $13.3 million in segment operating profit. Applied Digital's revenue soars, loss widens on growing AI investments
• Positive Sentiment: The Finland expansion broadens the company’s long-term growth opportunity. Applied Digital secured access to up to 1 gigawatt of potential power capacity for its first international AI campus, giving it a foothold in the Nordic market while discussions with hyperscale customers continue. Applied Digital climbs on securing 1GW power site for European AI campus
• Neutral Sentiment: Trading activity was unusually bullish before the report, with call-option volume well above normal, although this reflects positioning rather than a fundamental change in the business.
• Negative Sentiment: Profitability remains a major concern. GAAP net loss was $184.1 million, or $0.82 per share, and the loss widened as Applied Digital increased investment to meet AI infrastructure demand. The company continues to report negative margins and return on equity. Applied Digital Revenue Jumps 322% to $341.9 Million
• Negative Sentiment: Leverage and capital requirements could limit upside. The company held approximately $3.7 billion in cash, cash equivalents and restricted cash against $6.4 billion of debt, while continued campus construction and AI-related spending raise financing and execution risks.
• Negative Sentiment: Insider activity reported over the past six months consisted of selling rather than buying, which may weigh on investor sentiment.

Applied Digital Company Profile

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

The company's business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

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