Applied Digital (NASDAQ:APLD) Reaches New 1-Year High Following Analyst Upgrade

Key Points

• Applied Digital shares hit a new 52-week high after Citizens JMP raised its price target from $40 to $60 and kept an outperform rating. The stock traded as high as $48.57, well above its previous close of $39.52.
• Analyst sentiment has improved broadly, with Needham lifting its target to $66 and Roth Mkm reiterating a buy rating at $65. The overall consensus remains Moderate Buy with an average target price of $51.33.
• Recent business wins are boosting the outlook, including a $7.5 billion, 15-year lease at Polaris Forge 3 that pushed contracted capacity above 1 GW and raised total contracted lease revenue to about $31 billion. Analysts say this improves long-term revenue visibility, though the stock may stay volatile because expectations are high.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price reached a new 52-week high during trading on Friday after Citizens Jmp raised their price target on the stock from $40.00 to $60.00. Citizens Jmp currently has a market outperform rating on the stock. Applied Digital traded as high as $48.57 and last traded at $48.02, with a volume of 42912227 shares changing hands. The stock had previously closed at $39.52.

Several other equities analysts have also recently commented on APLD. Needham & Company LLC boosted their price target on shares of Applied Digital to $66.00 and gave the company a "buy" rating in a report on Thursday. Wall Street Zen cut shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Roth Mkm restated a "buy" rating and set a $65.00 price target on shares of Applied Digital in a report on Thursday, April 23rd. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Finally, Zacks Research upgraded shares of Applied Digital from a "strong sell" rating to a "hold" rating in a report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $51.33.

Insiders Place Their Bets

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

Applied Digital News Roundup

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

• Positive Sentiment: Applied Digital’s $7.5 billion, 15-year lease at Polaris Forge 3 pushed its total contracted capacity above 1 GW, strengthening long-term revenue visibility and confirming demand for its AI infrastructure platform.
• Positive Sentiment: Needham and Citizens JMP both raised price targets on APLD after the deal, reflecting improved confidence in backlog conversion and future growth. Needham says Polaris Forge 3 lease agreement could drive Applied Digital stock higher
• Positive Sentiment: The company’s total contracted lease revenue now stands at roughly $31 billion, giving investors more confidence that Applied Digital can scale its AI campus pipeline and monetize future capacity.
• Neutral Sentiment: Analysts noted the valuation is already rich, so the stock may remain volatile as investors weigh the large backlog against execution risk and high expectations.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently bought and sold shares of the company. Newbridge Financial Services Group Inc. boosted its holdings in Applied Digital by 8.6% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock valued at $93,000 after acquiring an additional 300 shares during the period. Concurrent Investment Advisors LLC boosted its holdings in Applied Digital by 1.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock valued at $523,000 after acquiring an additional 318 shares during the period. Brookstone Capital Management boosted its holdings in Applied Digital by 3.6% during the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock valued at $227,000 after acquiring an additional 321 shares during the period. ProShare Advisors LLC boosted its holdings in Applied Digital by 1.0% during the third quarter. ProShare Advisors LLC now owns 36,652 shares of the company's stock valued at $841,000 after acquiring an additional 376 shares during the period. Finally, Independent Advisor Alliance boosted its holdings in Applied Digital by 4.6% during the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock valued at $226,000 after acquiring an additional 407 shares during the period. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The stock's fifty day simple moving average is $32.04 and its 200-day simple moving average is $30.77. The company has a market capitalization of $13.72 billion, a P/E ratio of -64.89 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (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 the consensus estimate of $78.47 million. During the same quarter last year, the company earned ($0.08) earnings per share. The firm's revenue was up 139.3% on a year-over-year basis. On average, equities analysts forecast that Applied Digital Corporation will post -0.61 earnings per share for the current fiscal year.

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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