Applied Digital (NASDAQ:APLD – Get Free Report) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Monday,Zacks.com reports.
Other analysts have also recently issued research reports about the stock. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Tuesday. B. Riley Financial reaffirmed a “buy” rating and issued a $66.00 price objective (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Lake Street Capital increased their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a report on Tuesday. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Finally, Citizens Jmp increased their price objective 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. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Applied Digital presently has a consensus rating of “Moderate Buy” and an average price target of $67.67.
Applied Digital Stock Performance
Applied Digital (NASDAQ:APLD – Get Free Report) last posted its 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). The company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business’s quarterly revenue was up 139.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.08) earnings per share. As a group, equities research analysts predict that Applied Digital will post -0.68 EPS for the current year.
Insider Buying and Selling at Applied Digital
In other news, Director Douglas S. Miller sold 10,000 shares of the 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 transaction, 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the 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 transaction, the director directly owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 35,000 shares of company stock valued at $1,182,175. Company insiders own 9.50% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after purchasing an additional 6,445,908 shares in the last quarter. Situational Awareness LP grew its stake in shares of Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock worth $319,978,000 after purchasing an additional 2,139,378 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock worth $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new stake in shares of Applied Digital in the fourth quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after buying an additional 5,198,223 shares during the period. Institutional investors own 65.67% of the company’s stock.
Key Stories Impacting Applied Digital
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Applied Digital signed a 15-year, 210 MW lease with a U.S.-based investment-grade hyperscaler at its Delta Forge 2 campus, adding about $5.2 billion in contracted revenue and bringing total contracted portfolio value to roughly $36 billion across five campuses. Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
- Positive Sentiment: The company also signed a third hyperscaler lease in six weeks, further validating demand for its AI infrastructure and reinforcing visibility into future revenue. B. Riley pins APLD stock price at $66 after new lease signing
- Positive Sentiment: Analysts turned more bullish, with multiple firms raising price targets on the stock after the new lease announcements, signaling higher expected upside from current levels. Applied Digital Stock In Focus: Company Signs Fifth AI Campus Deal, Raises $1.59 Billion
- Neutral Sentiment: Applied Digital announced a $1.59 billion senior secured notes offering to fund the fourth building at Polaris Forge 1; while the debt raise supports growth, it also adds leverage and introduces financing execution risk. Applied Digital Announces Pricing of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
- Neutral Sentiment: The stock was also added to a Zacks Strong Sell list, which may temper enthusiasm, though this is outweighed today by the large contract wins and analyst upgrades. New Strong Sell Stocks for June 9th
About Applied Digital
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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