Applied Digital (NASDAQ:APLD) Downgraded by Zacks Research to “Strong Sell”

Applied Digital (NASDAQ:APLD) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

Several other brokerages have also recently issued reports on APLD. Lake Street Capital boosted their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday. Citizens Jmp lifted their target price on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Thursday, May 21st. Needham & Company LLC boosted their price target on shares of Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a research note on Tuesday. Roth Mkm reissued a “buy” rating and set a $65.00 price target on shares of Applied Digital in a report on Thursday, April 23rd. Finally, Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and an average price target of $67.67.

Applied Digital Stock Up 2.4%

Applied Digital stock opened at $41.91 on Monday. The stock has a 50 day moving average of $36.85 and a two-hundred day moving average of $32.38. Applied Digital has a twelve month low of $9.02 and a twelve month high of $50.72. The stock has a market capitalization of $11.98 billion, a price-to-earnings ratio of -56.63 and a beta of 5.69. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. During the same quarter last year, the company earned ($0.08) EPS. Applied Digital’s revenue for the quarter was up 139.3% compared to the same quarter last year. As a group, research analysts expect that Applied Digital will post -0.68 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred 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 sale, the director owned 184,859 shares in the company, valued at $6,466,367.82. This represents a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The shares were 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 $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 35,000 shares of company stock valued at $1,182,175. Insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several large investors have recently bought and sold shares of the company. Noble Wealth Management PBC purchased a new position in shares of Applied Digital in the fourth quarter valued at $25,000. Albion Financial Group UT purchased a new stake in shares of Applied Digital in the 4th quarter worth about $25,000. Activest Wealth Management acquired a new stake in Applied Digital in the 4th quarter valued at about $25,000. Ameriflex Group Inc. acquired a new stake in Applied Digital in the 4th quarter valued at about $25,000. Finally, McMillan Office Inc. purchased a new position in Applied Digital during the 4th quarter valued at about $25,000. Institutional investors and hedge funds 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

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.