Applied Digital (NASDAQ:APLD) Price Target Raised to $90.00 at Lake Street Capital

Applied Digital (NASDAQ:APLD) had its price objective hoisted by Lake Street Capital from $70.00 to $90.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Lake Street Capital’s target price indicates a potential upside of 112.30% from the stock’s previous close.

Several other brokerages have also recently issued reports on APLD. Roth Mkm restated a “buy” rating and set a $65.00 price objective on shares of Applied Digital in a research note on Thursday, April 23rd. Citizens Jmp increased their target price 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. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Needham & Company LLC boosted their price objective on shares of Applied Digital from $66.00 to $83.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Wednesday, May 27th. Three 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $63.22.

Applied Digital Stock Up 3.5%

Shares of APLD stock traded up $1.45 during trading hours on Tuesday, hitting $42.39. 9,516,963 shares of the company were exchanged, compared to its average volume of 25,461,482. The stock has a market capitalization of $12.11 billion, a price-to-earnings ratio of -57.29 and a beta of 5.69. Applied Digital has a one year low of $9.02 and a one year high of $50.72. The business’s 50-day simple moving average is $36.49 and its two-hundred day simple moving average is $32.25. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38.

Applied Digital (NASDAQ:APLD) last announced 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). The firm had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The company’s quarterly revenue was up 139.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.08) EPS. Sell-side analysts predict that Applied Digital will post -0.68 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction on Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction 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. The trade was a 5.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction dated Thursday, April 30th. The stock was 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 of the company’s stock, valued at $7,207,795.02. This represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 35,000 shares of company stock worth $1,182,175 over the last quarter. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after acquiring an additional 6,445,908 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the fourth quarter valued at $138,380,000. Situational Awareness LP increased its holdings in shares of Applied Digital by 87.0% during the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after purchasing an additional 5,274,905 shares during the period. BNP Paribas Financial Markets raised its stake in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc lifted its holdings in Applied Digital by 38,484.6% in the fourth quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock worth $95,745,000 after purchasing an additional 3,894,639 shares during the period. 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: Applied Digital signed a new 15-year, 210 MW lease at its Delta Forge 2 site with a U.S.-based investment-grade hyperscaler, which could generate about $5.2 billion in revenue and expands its AI Factory footprint to a fifth campus. Article Title
• Positive Sentiment: The company said this deal brings total contracted lease revenue to roughly $36 billion, with about 70% now backed by investment-grade hyperscalers, strengthening confidence in long-term cash flow growth. Article Title
• Positive Sentiment: Applied Digital also secured a revolving credit facility of up to $550 million, which should give it more flexibility to fund expansion and support strategic growth. Article Title
• Positive Sentiment: Needham raised its price target on Applied Digital to $83 from $66 and kept a Buy rating, signaling continued analyst confidence after the latest contract wins. Article Title
• Neutral Sentiment: The company announced plans to issue $1.59 billion of senior secured notes to help fund the fourth building at Polaris Forge 1, which supports growth but adds leverage and execution risk. Article Title
• Negative Sentiment: Zacks added APLD to its Rank #5 (Strong Sell) list, which may temper some investor enthusiasm despite the stock’s recent momentum. Article Title

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.