Applied Digital (NASDAQ:APLD) Given Market Outperform Rating at Citizens Jmp

Key Points

• Analyst firm Citizens Jmp reaffirmed a "market outperform" rating with a $40 price target (about a 52% upside), while the Street consensus remains a Buy with a ~$39.20 consensus price target.
• Q3 revenue beat at $108.6M (up ~139% YoY) driven by AI colocation ramps, but the company missed EPS at ($0.36) versus (~$0.13) expected and remains GAAP-loss-making.
• Key risks include rising leverage and interest costs amid a planned 500MW buildout and notable insider selling (244,593 shares in the last three months); the stock is volatile—opening around $26.28 with a 12‑month high of $42.27 and a beta of 7.25.

Applied Digital (NASDAQ:APLD - Get Free Report)'s stock had its "market outperform" rating reaffirmed by investment analysts at Citizens Jmp in a research note issued to investors on Thursday,Benzinga reports. They currently have a $40.00 target price on the stock. Citizens Jmp's price target suggests a potential upside of 52.20% from the company's previous close.

A number of other analysts have also issued reports on APLD. Freedom Capital upgraded shares of Applied Digital to a "strong-buy" rating in a research note on Tuesday, January 6th. Wall Street Zen upgraded shares of Applied Digital from a "sell" rating to a "hold" rating in a research note on Saturday, January 10th. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a research note on Wednesday, January 28th. Needham & Company LLC restated a "buy" rating and set a $41.00 price objective on shares of Applied Digital in a research note on Thursday, January 8th. Finally, Texas Capital upgraded Applied Digital to a "strong-buy" rating in a research report on Tuesday, January 20th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $39.20.

Applied Digital Price Performance

APLD opened at $26.28 on Thursday. Applied Digital has a twelve month low of $3.31 and a twelve month high of $42.27. The firm has a market cap of $7.35 billion, a price-to-earnings ratio of -48.11 and a beta of 7.25. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79. The company has a fifty day simple moving average of $29.29 and a 200 day simple moving average of $29.47.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued 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). The firm had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The business's quarterly revenue was up 139.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.08) EPS. Equities research analysts expect that Applied Digital will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Chuck Hastings sold 45,987 shares of the firm's stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $38.57, for a total value of $1,773,718.59. Following the sale, the director directly owned 388,372 shares in the company, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction on Monday, January 12th. The shares were sold at an average price of $38.54, for a total transaction of $385,400.00. Following the transaction, the director directly owned 200,859 shares of the company's stock, valued at approximately $7,741,105.86. This trade represents a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 244,593 shares of company stock worth $9,003,278. Insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its stake 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 during the period. NewEdge Advisors LLC boosted its position in shares of 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 during the period. Geneos Wealth Management Inc. grew its holdings in Applied Digital by 113.3% in the 1st 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 bought a new stake in Applied Digital during the 1st quarter valued at $71,000. Finally, Cetera Investment Advisers boosted its position in Applied Digital by 61.0% during the 2nd quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock worth $621,000 after acquiring an additional 23,360 shares during the period. 65.67% of the stock is 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: Revenue and demand beat — APLD reported sharply higher revenue (year‑over‑year growth ~139%) and topped quarterly revenue estimates as enterprise and AI customers ramp capacity, a primary driver cited for the stock’s upside. Applied Digital beats quarterly revenue estimates (Reuters)
• Positive Sentiment: Operational updates / long‑term demand commentary — Company press release and coverage note ongoing ramp at Polaris Forge and new customer commitments that underpin longer‑term AI colocation revenue potential. Applied Digital Reports Fiscal Third Quarter 2026 Results (GlobeNewswire/Yahoo)
• Positive Sentiment: Bullish derivatives activity — Unusually large call option volume was recorded on the print, signaling speculative/hedge positions that can amplify intraday upside. Investing.com coverage of post‑earnings move
• Neutral Sentiment: Earnings call and transcript available — Management’s Q&A may clarify cadence of capacity builds, backlog and timing of lease ramps; transcript published for deeper diligence. Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: EPS miss and continued GAAP loss — APLD reported ($0.36) EPS versus consensus (~$0.13 loss), a notable miss that helps explain why some investors sold into the headline revenue beat. Zacks: Q3 loss, revenue beat
• Negative Sentiment: Debt and interest‑cost worries — Multiple pieces highlight rising leverage and interest expense as a risk to margins and execution amid an aggressive 500MW buildout plan. Can APLD Navigate Rising Interest Costs? (Yahoo)
• Negative Sentiment: Analyst rank/downgrade signal — Zacks added APLD to its Rank #5 (Strong Sell) list on April 9, a headline that can pressure sentiment and attract short/ETF strategies. Zacks: New Strong Sell Stocks

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.

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