UBS Group upgraded shares of Applied Digital (NASDAQ:APLD – Free Report) to a strong-buy rating in a research report sent to investors on Wednesday morning,Zacks reports.
Several other brokerages also recently issued reports on APLD. Wells Fargo & Company initiated coverage on shares of Applied Digital in a research note on Thursday, September 17th. They issued an “overweight” rating and a $50.00 price objective for the company. Rothschild & Co Redburn set a $22.00 price target on Applied Digital and gave the stock a “neutral” rating in a report on Monday. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Lake Street Capital boosted their price objective on Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Finally, Northland Securities set a $82.00 price objective on Applied Digital and gave the company an “outperform” rating in a research report on Wednesday, June 17th. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $60.88.
Read Our Latest Report on APLD
Applied Digital Stock Down 4.6%
Applied Digital (NASDAQ:APLD – Get Free Report) last announced its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm had revenue of $240.35 million during the quarter, compared to analysts’ expectations of $96.85 million. During the same period in the prior year, the company posted ($0.24) EPS. The company’s revenue was up 406.3% compared to the same quarter last year. On average, analysts predict that Applied Digital will post -1.09 earnings per share for the current year.
Insider Transactions at Applied Digital
In related news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director owned 133,378 shares of the company’s stock, valued at $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 9.50% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Applied Digital
Institutional investors have recently made changes to their positions in the company. Envestnet Asset Management Inc. raised its holdings in shares of Applied Digital by 4.7% in the second quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock valued at $497,000 after acquiring an additional 596 shares in the last quarter. WINTON GROUP Ltd bought a new position in Applied Digital during the 2nd quarter worth about $209,000. Engineers Gate Manager LP bought a new position in Applied Digital during the 2nd quarter worth about $4,350,000. Integrated Wealth Concepts LLC purchased a new position in Applied Digital during the 2nd quarter valued at about $265,000. Finally, NewEdge Advisors LLC increased its position in Applied Digital by 35.1% during the 2nd quarter. NewEdge Advisors LLC now owns 81,134 shares of the company’s stock valued at $3,026,000 after purchasing an additional 21,093 shares during the period. Hedge funds and other institutional investors own 65.67% of the company’s stock.
Trending Headlines about Applied Digital
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: UBS initiated coverage with a Buy rating and a $38 price target, citing constrained AI-compute supply, favorable power access and Applied Digital’s transition from cryptocurrency mining to high-performance-computing data centers. UBS views the company’s grid access and existing infrastructure as competitive advantages as AI demand accelerates. UBS initiates Applied Digital at Buy with $38 price target, citing AI infrastructure momentum
- Positive Sentiment: UBS also initiated Buy ratings on four comparable AI data-center operators, reinforcing a favorable sector outlook and potentially increasing investor interest in Applied Digital’s AI infrastructure strategy. UBS turns bullish on five AI data center stocks
- Neutral Sentiment: Applied Digital has reported approximately $36 billion of contracted long-term lease value and is highlighting strong economics on high-performance-computing projects. However, investors are still waiting for clearer evidence that the contracts will translate into cash flow and shareholder value. Should You Sell Your APLD Stock Now?
- Negative Sentiment: Analyst sentiment remains divided. A fair-value estimate was reduced from $73.36 to $68.35 amid concerns over contracted capacity, financing requirements and how much AI growth is already reflected in the valuation. Applied Digital Stock Sees Fair Value Cut As Analysts Split On AI Buildout
- Negative Sentiment: Redburn initiated coverage with a Neutral rating and a $22 target, implying substantial downside from recent trading levels. Investors also remain concerned about power and supply-chain constraints, lower yields on new deals and the capital needed to deliver the company’s backlog. APLD’s 250MW Question
About Applied Digital
Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.
The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.
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