Applied Digital (NASDAQ:APLD) Receives Buy Rating from Needham & Company LLC

Applied Digital (NASDAQ:APLD)‘s stock had its “buy” rating reissued by investment analysts at Needham & Company LLC in a research note issued to investors on Tuesday, MarketBeat Ratings reports. They presently have a $83.00 price objective on the stock. Needham & Company LLC’s target price would suggest a potential upside of 214.63% from the company’s previous close.

Several other equities analysts have also weighed in on APLD. Morgan Stanley assumed coverage on Applied Digital in a report on Thursday. They set a “buy” rating and a $36.50 target price on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Finally, Roth Capital reiterated a “buy” rating and set a $65.00 target price on shares of Applied Digital in a report on Thursday, April 23rd. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $67.15.

Applied Digital Stock Performance

Shares of NASDAQ APLD opened at $26.38 on Tuesday. Applied Digital has a 52-week low of $9.79 and a 52-week high of $50.72. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of -35.65 and a beta of 5.67. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock’s fifty day simple moving average is $38.54 and its 200 day simple moving average is $34.54.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The firm had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company’s revenue for the quarter was up 406.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.24) EPS. As a group, sell-side analysts forecast that Applied Digital will post -0.7 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction on 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 9.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Albion Financial Group UT bought a new stake in shares of Applied Digital in the fourth quarter worth about $25,000. Activest Wealth Management bought a new stake in shares of Applied Digital in the 4th quarter worth approximately $25,000. Ameriflex Group Inc. purchased a new position in shares of Applied Digital during the fourth quarter valued at approximately $25,000. McMillan Office Inc. bought a new position in shares of Applied Digital during the fourth quarter valued at approximately $25,000. Finally, Larson Financial Group LLC lifted its stake in Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after acquiring an additional 1,129 shares during the period. Institutional investors own 65.67% of the company’s stock.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Fiscal Q4 revenue rose approximately 406% year over year to $240.4 million, substantially exceeding the roughly $96.9 million analyst consensus. The growth reflects strong demand for Applied Digital’s high-performance computing and AI data centers. Applied Digital Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Management said it has secured three long-term hyperscaler leases worth approximately $20 billion, with contracted AI data-center capacity reaching 1.4 gigawatts across five campuses. This provides significant future revenue visibility and supports the company’s AI infrastructure growth strategy. Applied Digital Corporation Stock Rebounds as Revenue Soars and AI Data Center Expansion Accelerates
• Positive Sentiment: The company reported progress at its Polaris Forge 1 HPC campus and expanded financing, including new notes and a larger credit facility, to fund additional data-center construction. Investors viewed the financing and customer commitments as evidence of continued operating momentum. Applied Digital Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Coverage emphasized that Applied Digital’s results are being driven by a rapidly expanding AI data-center market and an expanding client base, including CoreWeave. The stock’s high beta and substantial recent volatility may continue to amplify reactions to earnings and financing news. Applied Digital Beats Quarterly Revenue Estimates on Surging AI Infrastructure Demand
• Negative Sentiment: Despite the revenue beat, fiscal Q4 adjusted earnings were a loss of $0.39 per share, missing the $0.09 loss expected by analysts. Applied Digital also continues to report a negative net margin and negative return on equity, underscoring the costs and execution risks associated with its expansion. Applied Digital Quarterly Earnings Report
• Negative Sentiment: The company’s reliance on debt and additional financing to build campuses leaves investors exposed to higher interest costs, dilution or execution risk if AI tenants delay deployments. This weak profitability and balance-sheet concern partly offset the strong backlog and revenue growth.

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.