Applied Digital (NASDAQ:APLD) Stock Gets Price Target Cut from Needham & Company LLC

Applied Digital (NASDAQ:APLD) had its price target lowered by Needham & Company LLC from $83.00 to $70.00 in a research report report published on Thursday, Marketbeat reports. The brokerage currently has a buy rating on the stock.

Several other research firms also recently weighed in on APLD. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a research note on Thursday. Wells Fargo & Company reissued an “overweight” rating and issued a $55.00 target price (up from $50.00) on shares of Applied Digital in a research report on Thursday. Northland Securities set a $82.00 target price on Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Finally, Rothschild & Co Redburn set a $22.00 price target on Applied Digital and gave the company a “neutral” rating in a report on Monday, September 21st. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $62.25.

Applied Digital Trading Down 0.7%

NASDAQ:APLD opened at $23.68 on Thursday. Applied Digital has a 12-month low of $19.00 and a 12-month high of $50.72. The firm has a market capitalization of $7.16 billion, a P/E ratio of -14.44 and a beta of 5.99. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The business has a 50 day simple moving average of $27.00 and a 200 day simple moving average of $32.47.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.31%. The business had revenue of $300.39 million during the quarter, compared to analyst estimates of $116.29 million. During the same quarter in the prior year, the firm earned ($0.03) earnings per share. The company’s quarterly revenue was up 367.8% on a year-over-year basis. Equities research analysts predict that Applied Digital will post -1.09 EPS for the current year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the sale, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several hedge funds have recently added to or reduced their stakes in APLD. GAMMA Investing LLC increased its holdings in shares of Applied Digital by 42.6% during the 3rd quarter. GAMMA Investing LLC now owns 2,983 shares of the company’s stock worth $73,000 after purchasing an additional 891 shares during the period. CoreCap Advisors LLC increased its position in shares of Applied Digital by 246.6% during the third quarter. CoreCap Advisors LLC now owns 2,194 shares of the company’s stock valued at $53,000 after purchasing an additional 1,561 shares during the period. Valeo Financial Advisors LLC increased its position in shares of Applied Digital by 6.7% during the third quarter. Valeo Financial Advisors LLC now owns 12,343 shares of the company’s stock valued at $301,000 after purchasing an additional 773 shares during the period. Two Seas Capital LP acquired a new position in shares of Applied Digital in the third quarter valued at $1,218,000. Finally, Envestnet Asset Management Inc. raised its stake 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 purchasing an additional 596 shares in the last quarter. Institutional investors own 65.67% of the company’s stock.

Key Applied Digital News

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

• Positive Sentiment: Revenue and earnings substantially exceeded expectations. Fiscal Q1 2027 revenue jumped 322% year over year to $341.9 million, while the adjusted loss of $0.01 per share was far narrower than analysts’ expected loss. Adjusted EBITDA reached $64.4 million, supporting the view that rising data-center utilization can improve operating leverage. APLD Q3 Deep Dive: AI Data Center Growth and Strategic Campus Expansion Highlight Quarter
• Positive Sentiment: Large capacity expansion could drive future recurring revenue. Management expects to bring more than 600 megawatts online over the next 12 months, while its contracted buildout is approximately 1.4 gigawatts. Analysts cited premium leases, AI demand and potential additional financing or leasing activity as catalysts. Applied Digital: More Than 600MW Could Drive The Next Leg Of Growth
• Positive Sentiment: Finland broadens the company’s power and geographic footprint. Applied Digital secured access to as much as 1 gigawatt of power capacity in Finland for a planned AI Factory campus. The Nordic region’s stable grids, available power and less-congested permitting environment could help the company serve hyperscale AI customers. What Is Applied Digital Signaling With Its First Finland AI Factory Move?
• Positive Sentiment: Analysts remain broadly optimistic. Needham maintained a Buy rating while lowering its target to $70 from $83, and other bullish commentary has pointed to targets near $65-$70, implying significant upside if Applied Digital executes its expansion plans. Applied Digital’s Hidden Moat Could Unlock Massive Upside
• Neutral Sentiment: Unusual options activity and a reported short-interest figure of zero shares may indicate changing positioning, but the short-interest data appears inconsistent and should be treated cautiously.
• Negative Sentiment: Profitability and funding remain concerns. Higher operating costs, interest expense and fair-value losses widened the GAAP loss. With a debt-to-equity ratio of 2.88, investors remain focused on the cost and availability of financing needed to complete the contracted buildout. Applied Digital Q1 Earnings Miss on Higher Costs, Revenues Beat
• Negative Sentiment: Higher Treasury yields have pressured financing-dependent AI and data-center stocks, while analysts continue to debate construction execution, competition and whether strong contracted revenue will convert into cash flow.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.