Applied Digital (NASDAQ:APLD) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Applied Digital from “strong sell” to “hold”, adding to a broadly positive analyst backdrop that includes a consensus rating of “Moderate Buy” and an average price target of $44.33.
• The stock was trading around $41.25, near its 52-week high of $44.25, reflecting strong recent momentum despite a highly volatile profile with a beta of 5.69.
• Applied Digital’s latest earnings showed revenue growth of 139.3% year over year to $108.55 million, but the company still missed EPS estimates and reported a loss of $0.36 per share.

Applied Digital (NASDAQ:APLD - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

Other analysts have also issued reports about the company. Citigroup reiterated an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Texas Capital upgraded Applied Digital to a "strong-buy" rating in a report on Tuesday, January 20th. Wall Street Zen lowered Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Finally, Citizens Jmp reiterated a "market outperform" rating and set a $40.00 price target on shares of Applied Digital in a report on Thursday, April 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Applied Digital currently has a consensus rating of "Moderate Buy" and an average price target of $44.33.

Applied Digital Stock Down 0.7%

APLD stock opened at $41.25 on Thursday. Applied Digital has a twelve month low of $5.13 and a twelve month high of $44.25. 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 stock's 50 day moving average is $28.99 and its 200-day moving average is $30.13. The firm has a market capitalization of $11.79 billion, a PE ratio of -55.74 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share 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 company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter in the prior year, the business earned ($0.08) EPS. The firm's revenue for the quarter was up 139.3% compared to the same quarter last year. Sell-side analysts expect that Applied Digital will post -0.52 EPS for the current fiscal year.

Insiders Place Their Bets

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction 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 sale, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the firm's stock in a transaction 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 completion of the sale, the director directly 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 SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock valued at $1,182,175 over the last three months. Company insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

A number of large investors have recently bought and sold shares of APLD. AQR Capital Management LLC increased its position in Applied Digital by 84.8% in the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after buying an additional 8,692 shares during the last quarter. NewEdge Advisors LLC increased its position in Applied Digital by 239.1% in 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 last quarter. Geneos Wealth Management Inc. increased its position in Applied Digital by 113.3% in the first 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 during the last quarter. Strs Ohio purchased a new stake in Applied Digital in the first quarter worth $71,000. Finally, Cetera Investment Advisers increased its position in Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock worth $621,000 after buying an additional 23,360 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Applied Digital’s share price is being supported by continued momentum after its latest earnings report, with traders focusing on the company’s strong revenue growth and expectations tied to its AI/data center expansion. Why Is Applied Digital Corporation (APLD) Up 62.4% Since Last Earnings Report?
• Positive Sentiment: Analyst coverage remains favorable, with consensus ratings pointing to a “Moderate Buy,” which can help reinforce bullish sentiment around the stock. Applied Digital Corporation NASDAQ: APLD Given Consensus Recommendation of "Moderate Buy" by Analysts
• Positive Sentiment: Coverage highlighting Applied Digital’s move to all-time highs and its role in the AI data center buildout is adding to the market’s bullish narrative. APLD breaks to all-time highs: How to trade the AI data center buildout right now
• Neutral Sentiment: Applied Digital finalized the ChronoScale spin-off and retained control, a structural update that may reshape the business but does not yet clearly signal an immediate earnings impact. Applied Digital Finalizes ChronoScale Spin-Off and Retains Control
• Neutral Sentiment: Comparisons with another financial services company are largely informational and are unlikely to be a major driver of APLD’s stock price. Critical Comparison: Applied Digital NASDAQ: APLD vs. Freedom NASDAQ: FRHC
• Negative Sentiment: The ChronoScale spin-off also creates some uncertainty around how value will be allocated between the remaining business and the new listing, which can temper enthusiasm for some investors. CHRN Stock Just Started Trading as Applied Digital Spins Off ChronoScale. How to Play Shares Here.

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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