Applied Digital (NASDAQ:APLD) Stock Price Up 3.4% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price rose 3.4% during trading on Monday . The company traded as high as $41.43 and last traded at $40.95. Approximately 14,609,777 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 25,655,617 shares. The stock had previously closed at $39.62.

Applied Digital News Roundup

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

• Positive Sentiment: Applied Digital signed a 15-year lease with a hyperscaler that could bring in about $5.2 billion and significantly expands its AI data center backlog. Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
• Positive Sentiment: The company’s total contracted revenue was said to rise to roughly $36 billion across five campuses, reinforcing the long-term growth story. Applied Digital signs 210 MW lease at fifth AI factory campus, pushing contracted revenue to $36 billion
• Positive Sentiment: Multiple analysts raised their price targets after the new lease, signaling increased confidence in the stock’s upside. Analyst price target updates
• Neutral Sentiment: Applied Digital announced a $1.59 billion senior secured notes offering to fund construction, which supports expansion but also adds financing complexity. Applied Digital Announces Pricing of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
• Negative Sentiment: Zacks downgraded Applied Digital from hold to strong sell, adding a bearish note despite the recent deal momentum. New Strong Sell Stocks for June 9th

Wall Street Analysts Forecast Growth

APLD has been the subject of a number of research reports. B. Riley Financial reiterated a “buy” rating and issued a $66.00 price target (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Needham & Company LLC lifted their price target on Applied Digital from $66.00 to $83.00 and gave the stock a “buy” rating in a research note on Tuesday. Craig Hallum lifted their price target on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research note on Tuesday. Citizens Jmp lifted their price target on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Finally, Lucid Cap Mkts raised shares of Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Three equities research 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.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $67.67.

Applied Digital Stock Down 7.1%

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The stock’s fifty day simple moving average is $36.85 and its 200-day simple moving average is $32.38. The stock has a market cap of $11.12 billion, a P/E ratio of -52.59 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last issued 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). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same period in the prior year, the business earned ($0.08) EPS. The business’s revenue was up 139.3% on a year-over-year basis. On average, research analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction that occurred 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 sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 35,000 shares of company stock valued at $1,182,175 over the last three months. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. raised its holdings in Applied Digital by 8.6% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC raised its holdings in Applied Digital by 1.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after purchasing an additional 318 shares in the last quarter. Brookstone Capital Management raised its holdings in Applied Digital by 3.6% during the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock worth $227,000 after purchasing an additional 321 shares in the last quarter. ProShare Advisors LLC raised its holdings in Applied Digital by 1.0% during the third quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock worth $841,000 after purchasing an additional 376 shares in the last quarter. Finally, Independent Advisor Alliance raised its holdings in Applied Digital by 4.6% during the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock worth $226,000 after purchasing an additional 407 shares in the last quarter. Institutional investors own 65.67% of the company’s stock.

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.