Applied Digital (NASDAQ:APLD) Given New $70.00 Price Target at Needham & Company LLC

Applied Digital (NASDAQ:APLD) had its target price decreased by research analysts at Needham & Company LLC from $83.00 to $70.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price target points to a potential upside of 193.99% from the stock’s previous close.

A number of other analysts also recently weighed in on APLD. Morgan Stanley upped their target price on shares of Applied Digital from $36.50 to $37.50 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. UBS Group assumed coverage on shares of Applied Digital in a research note on Wednesday, September 23rd. They set a “buy” rating and a $38.00 target price for the company. Rothschild & Co Redburn set a $22.00 price target on Applied Digital and gave the stock a “neutral” rating in a research report on Monday, September 21st. Finally, Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Applied Digital presently has an average rating of “Moderate Buy” and an average target price of $60.27.

Applied Digital Price Performance

Shares of NASDAQ APLD opened at $23.81 on Thursday. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. Applied Digital has a 1 year low of $19.00 and a 1 year high of $50.72. The company’s 50-day moving average is $27.15 and its 200 day moving average is $32.54. The stock has a market capitalization of $6.94 billion, a P/E ratio of -26.75 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The firm had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the prior year, the business earned ($0.03) EPS. The business’s revenue for the quarter was up 367.8% on a year-over-year basis. On average, sell-side analysts expect that Applied Digital will post -1.09 earnings per share for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. 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

A number of large investors have recently made changes to their positions in the stock. Whitaker Myers Wealth Managers LTD. bought a new position in shares of Applied Digital in the 2nd quarter worth approximately $1,841,000. Cambridge Investment Research Advisors Inc. grew its position in Applied Digital by 39.6% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock valued at $5,469,000 after buying an additional 41,562 shares during the period. Dimensional Fund Advisors LP bought a new stake in Applied Digital during the first quarter valued at approximately $1,970,000. Situational Awareness LP increased its holdings in Applied Digital by 14.1% during the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock valued at $574,000 after buying an additional 1,906,178 shares during the last quarter. Finally, TFR Capital LLC. increased its holdings in Applied Digital by 425.3% during the first quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock valued at $9,497,000 after buying an additional 301,954 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors.

Applied Digital News Roundup

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

• Positive Sentiment: Revenue substantially exceeded expectations. Fiscal Q1 revenue rose 322% year over year to $341.9 million, while several reports cited adjusted revenue of approximately $300.4 million versus estimates near $111 million–$116 million. Adjusted loss of $0.01 per share also beat expectations for a loss of roughly $0.26–$0.30. Applied Digital Reports Fiscal First Quarter 2027 Results
• Positive Sentiment: AI data-center demand is translating into growth and contracted visibility. Applied Digital reported approximately 1.41 gigawatts of leased critical IT load across five campuses and about $36 billion in contracted revenue over initial lease terms. Data Center Hosting generated $37.8 million of revenue and $13.3 million in segment operating profit. Applied Digital’s revenue soars, loss widens on growing AI investments
• Positive Sentiment: The Finland expansion broadens the company’s long-term growth opportunity. Applied Digital secured access to up to 1 gigawatt of potential power capacity for its first international AI campus, giving it a foothold in the Nordic market while discussions with hyperscale customers continue. Applied Digital climbs on securing 1GW power site for European AI campus
• Neutral Sentiment: Trading activity was unusually bullish before the report, with call-option volume well above normal, although this reflects positioning rather than a fundamental change in the business.
• Negative Sentiment: Profitability remains a major concern. GAAP net loss was $184.1 million, or $0.82 per share, and the loss widened as Applied Digital increased investment to meet AI infrastructure demand. The company continues to report negative margins and return on equity. Applied Digital Revenue Jumps 322% to $341.9 Million
• Negative Sentiment: Leverage and capital requirements could limit upside. The company held approximately $3.7 billion in cash, cash equivalents and restricted cash against $6.4 billion of debt, while continued campus construction and AI-related spending raise financing and execution risks.
• Negative Sentiment: Insider activity reported over the past six months consisted of selling rather than buying, which may weigh on investor sentiment.

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.