Applied Digital (NASDAQ:APLD) Coverage Initiated at Arete

Investment analysts at Arete started coverage on shares of Applied Digital (NASDAQ:APLD) in a note issued to investors on Wednesday, MarketBeat reports. The firm set a “buy” rating on the stock.

Several other analysts have also recently commented on the stock. B. Riley reaffirmed a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Needham & Company LLC restated a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a report on Wednesday, October 29th. Northland Securities reaffirmed an “outperform” rating and issued a $40.00 price objective on shares of Applied Digital in a research report on Tuesday, December 30th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Finally, Wall Street Zen downgraded Applied Digital from a “hold” rating to a “sell” rating in a research report on Sunday, October 19th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $29.82.

Applied Digital Price Performance

NASDAQ:APLD opened at $31.94 on Wednesday. Applied Digital has a 12-month low of $3.31 and a 12-month high of $40.20. The firm has a market cap of $8.92 billion, a price-to-earnings ratio of -59.15 and a beta of 6.89. The company’s 50-day moving average is $27.27 and its two-hundred day moving average is $21.55. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Wednesday, January 7th. The company reported ($0.11) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). The firm had revenue of $126.59 million for the quarter, compared to analysts’ expectations of $82.22 million. Applied Digital had a negative return on equity of 17.52% and a negative net margin of 43.49%.The business’s quarterly revenue was up 250.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.06) earnings per share. Research analysts expect that Applied Digital will post -0.96 EPS for the current year.

Insider Buying and Selling

In other news, Director Richard N. Nottenburg sold 34,375 shares of Applied Digital stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $33.23, for a total value of $1,142,281.25. Following the transaction, the director directly owned 263,612 shares of the company’s stock, valued at $8,759,826.76. The trade was a 11.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Rachel H. Lee sold 24,213 shares of the business’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $33.20, for a total value of $803,871.60. Following the sale, the director owned 59,400 shares of the company’s stock, valued at $1,972,080. The trade was a 28.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 328,035 shares of company stock worth $11,376,479. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently made changes to their positions in the business. ProShare Advisors LLC grew its position in shares of 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 buying an additional 376 shares in the last quarter. PNC Financial Services Group Inc. raised its holdings in Applied Digital by 7.4% in the third quarter. PNC Financial Services Group Inc. now owns 5,951 shares of the company’s stock valued at $137,000 after acquiring an additional 408 shares in the last quarter. Wedbush Securities Inc. boosted its stake in Applied Digital by 5.7% during the 3rd quarter. Wedbush Securities Inc. now owns 10,785 shares of the company’s stock valued at $247,000 after acquiring an additional 585 shares during the last quarter. GAMMA Investing LLC grew its holdings in Applied Digital by 87.5% during the 4th quarter. GAMMA Investing LLC now owns 1,376 shares of the company’s stock worth $34,000 after acquiring an additional 642 shares in the last quarter. Finally, Allworth Financial LP grew its holdings in Applied Digital by 70.0% during the 3rd quarter. Allworth Financial LP now owns 1,746 shares of the company’s stock worth $40,000 after acquiring an additional 719 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital News Summary

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

• Positive Sentiment: Revenue surged ~250% YoY as Polaris Forge 1 came online and tenant fit-outs accelerated, signaling that AI workload demand is translating into material sales growth. Reuters: APLD beats quarterly revenue estimates
• Positive Sentiment: Management disclosed a large expansion pipeline (reports cite ~900 MW of capacity additions and a multi-billion-dollar backlog) and targets ~$1B NOI over time — evidence of multi-year revenue visibility if leases convert. Yahoo: Applied Digital targets $1B NOI
• Positive Sentiment: Company hinted it could finalize a lease with a new AI hyperscaler customer in 2026, raising hopes for a large-contract catalyst. Barron’s: Teases new hyperscaler customer
• Positive Sentiment: Several analysts reiterated/raised positive coverage (Needham $41 PT, new coverage/strong-buy notes from others), which supports further upside and helped fuel buying. TipRanks: Reiterated buy rating
• Neutral Sentiment: Market commentary and transcripts highlight positive execution and adjusted profitability (MarketBeat/earnings call excerpts), giving more detail on adjusted EBITDA and cash-flow trajectory. MarketBeat: Reignites momentum
• Neutral Sentiment: The company filed its official Q2 press release and earnings call transcript (useful for modeling lease conversion timing and capex plans). GlobeNewswire: Q2 results
• Negative Sentiment: GAAP EPS missed consensus (reported -$0.11 vs. -$0.09 est. per some reports); higher costs and investments weighed on the bottom line despite revenue outperformance. Zacks: Q2 earnings miss
• Negative Sentiment: Company remains unprofitable on a GAAP basis with negative net margin and ROE; timing of sustained free cash flow depends on lease conversions and executing large builds. Seeking Alpha: Q2 is a sign of things to come

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.