Applied Digital (NASDAQ:APLD) Trading 3.4% Higher - Here's What Happened

Key Points

• Applied Digital shares rose 3.4% on Monday, trading as high as $41.43 before closing near $40.95, with volume below its average session level.
• The company recently announced a 210 MW lease at Delta Forge 2 with a U.S.-based hyperscaler and secured a revolving credit facility of up to $550 million to support expansion and new data-center buildouts.
• Wall Street sentiment remains upbeat overall, with several analysts raising targets and Needham reiterating a Buy rating with a $66 price target, though the stock remains volatile and some coverage is mixed.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded up 3.4% on Monday . The company traded as high as $41.43 and last traded at $40.95. 14,609,777 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 25,655,617 shares. The stock had previously closed at $39.62.

More Applied Digital News

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

• Positive Sentiment: Applied Digital signed a 210 MW lease at Delta Forge 2 with a U.S.-based investment-grade hyperscaler, expanding its AI Factory model to a fifth campus and reinforcing long-term contracted demand. Article Title
• Positive Sentiment: The company secured a revolving credit facility of up to $550 million, including $350 million of committed capacity and a potential $200 million accordion, which should help fund strategic growth and new data-center buildouts. Article Title
• Positive Sentiment: Analysts continue to highlight Applied Digital’s growing multi-year visibility and AI infrastructure demand, with Needham reiterating a Buy rating and a $66 price target. Article Title
• Neutral Sentiment: Recent commentary from market outlets has focused on the stock’s sharp rally and ongoing volatility, suggesting sentiment remains elevated but mixed after a strong run. Article Title
• Neutral Sentiment: Other coverage is centered on Applied Digital’s power strategy and AI infrastructure positioning, which supports the long-term thesis but does not add a near-term financial surprise. Article Title

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Digital in a research report on Friday, April 24th. Roth Mkm reaffirmed a "buy" rating and set a $65.00 price target on shares of Applied Digital in a research report on Thursday, April 23rd. Citizens Jmp upped 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. Needham & Company LLC upped their price target on shares of Applied Digital from $51.00 to $66.00 and gave the stock a "buy" 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. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $59.11.

Applied Digital Trading Up 3.3%

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The firm's 50 day simple moving average is $36.19 and its 200-day simple moving average is $32.12. The company has a market capitalization of $11.70 billion, a PE ratio of -55.32 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million for the quarter, compared to analysts' expectations of $78.47 million. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. Applied Digital's quarterly revenue was up 139.3% compared to the same quarter last year. As a group, equities research analysts anticipate that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, the director owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Several institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted 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 stake in shares of Applied Digital by 239.1% in the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock valued at $187,000 after purchasing an additional 23,457 shares during the period. Geneos Wealth Management Inc. boosted its stake in shares of Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after purchasing an additional 3,542 shares during the period. Strs Ohio purchased a new position in shares of Applied Digital in the first quarter valued at $71,000. Finally, Cetera Investment Advisers boosted its stake in shares of Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after purchasing an additional 23,360 shares during the period. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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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