Zacks Research Upgrades Applied Digital (NASDAQ:APLD) to “Hold”

Posted by Brian Himes on Jul 29th, 2026

Applied Digital (NASDAQ:APLD – Get Free Report) was upgraded by stock analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the stock. Morgan Stanley started coverage on shares of Applied Digital in a report on Thursday, July 23rd. They set a “buy” rating and a $36.50 target price on the stock. Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Citizens Jmp lifted their price target on shares of Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Thursday, May 21st. B. Riley Financial reissued a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Finally, Compass Point restated a “buy” rating and issued a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $67.15.

View Our Latest Research Report on Applied Digital

Applied Digital Stock Performance

NASDAQ:APLD opened at $26.62 on Monday. The stock’s 50-day moving average is $38.34 and its 200-day moving average is $34.52. Applied Digital has a 1-year low of $9.79 and a 1-year high of $50.72. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a market cap of $7.61 billion, a P/E ratio of -29.91 and a beta of 5.67.

Applied Digital (NASDAQ:APLD – Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 17.53%. The business had revenue of $240.35 million during the quarter, compared to the consensus estimate of $96.85 million. During the same quarter last year, the business earned ($0.24) EPS. The firm’s quarterly revenue was up 406.3% compared to the same quarter last year. Equities research analysts anticipate that Applied Digital will post -1.1 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Axxcess Wealth Management LLC acquired a new position in Applied Digital during the 2nd quarter worth approximately $305,000. Atria Investments Inc bought a new position in Applied Digital in the second quarter worth approximately $224,000. Creative Financial Designs Inc. ADV grew its stake in Applied Digital by 691.8% in the second quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock valued at $57,000 after acquiring an additional 1,342 shares during the period. Kestra Private Wealth Services LLC grew its stake in Applied Digital by 14.5% in the second quarter. Kestra Private Wealth Services LLC now owns 79,507 shares of the company’s stock valued at $2,966,000 after acquiring an additional 10,084 shares during the period. Finally, ProCore Advisors LLC bought a new stake in shares of Applied Digital during the second quarter valued at approximately $286,000. 65.67% of the stock is owned by institutional investors.

Key Stories Impacting Applied Digital

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

Positive Sentiment: Exceptional revenue growth and adjusted earnings beat: Fiscal fourth-quarter revenue reached approximately $258.7 million, up about 407% year over year and well above Wall Street expectations. Non-GAAP EPS was $0.04, compared with analysts’ anticipated loss, supported by HPC hosting and tenant fit-out services. Applied Digital revenue quadruples on AI data center demand
Positive Sentiment: Large contracted backlog improves visibility: Management said contracted lease value reached $36 billion, up 125% year over year, with investment-grade hyperscalers among its customers. Contracted AI capacity totaled roughly 1.4 gigawatts across five campuses, supporting expectations for substantial future cash flow. Applied Digital expects $1B NOI run rate
Positive Sentiment: Ambitious expansion targets and analyst support: Applied Digital is targeting a $1 billion annual net operating income run rate within one year and has secured financing for future campuses. Needham reaffirmed its Buy rating with an $83 price target, reflecting confidence in the company’s AI data center pipeline. Needham reiterates Buy rating
Neutral Sentiment: Power availability is becoming the main constraint: Management is pursuing new natural-gas generation to secure electricity for additional AI campuses. Success could create a competitive advantage, but delays or shortages could limit growth.
Negative Sentiment: GAAP profitability and balance-sheet concerns remain: The company reported a quarterly GAAP loss of $0.39 per share, missing the consensus loss estimate, while maintaining negative net margins and return on equity. Elevated debt and ongoing capital requirements for data center construction could pressure cash flow and increase financing risk. Applied Digital earnings report

Applied Digital Company Profile

(Get Free Report)

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.