Applied Digital Corporation (NASDAQ:APLD – Get Free Report) shares traded down 1.7% on Thursday . The company traded as low as $30.45 and last traded at $30.62. 16,000,637 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 24,067,598 shares. The stock had previously closed at $31.15.
Key Applied Digital News
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: AI infrastructure demand remains a supportive industry catalyst. CoreWeave, Nebius and Super Micro rallied after upbeat forecasts highlighted sustained demand for computing capacity, potentially benefiting data-center operators such as Applied Digital. CoreWeave Jumps 18% as AI Capacity Sells Out
- Positive Sentiment: A reported 20-year, $9.1 billion Anthropic lease at a competing data-center project underscores the potential scale and durability of AI hosting contracts. The development reinforces the strategic shift by infrastructure providers from cryptocurrency mining toward AI data centers, although it is not a direct Applied Digital contract announcement. Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
- Neutral Sentiment: Applied Digital is expected to release earnings on Thursday. Investors will likely focus on data-center capacity expansion, customer contracts, cash requirements, debt and the company’s path toward profitability. Applied Digital to Release Earnings on Thursday
- Negative Sentiment: Zacks added APLD to its Rank #5 “Strong Sell” list, adding near-term pressure and reflecting unfavorable analyst or earnings trends. New Strong Sell Stocks for August 13th
- Negative Sentiment: A review of Applied Digital’s 101% one-year rally warns that heavy capital needs, high debt, competition, weaker earnings estimates and an expensive valuation could limit further upside. These concerns are particularly important because the company remains unprofitable and has recently missed earnings expectations despite rapid revenue growth. APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?
Wall Street Analysts Forecast Growth
APLD has been the topic of a number of research reports. Roth Capital reaffirmed a “buy” rating and issued a $65.00 price target on shares of Applied Digital in a report on Thursday, April 23rd. Craig Hallum increased their price objective on Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. Zacks Research upgraded Applied Digital from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. Finally, Northland Securities set a $82.00 price target on Applied Digital and gave the company an “outperform” rating in a research report on Wednesday, June 17th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $68.15.
Applied Digital Stock Down 1.7%
The stock has a market capitalization of $8.92 billion, a P/E ratio of -34.40 and a beta of 5.75. 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 stock has a fifty day moving average price of $34.47 and a 200 day moving average price of $33.97.
Applied Digital (NASDAQ:APLD – Get Free Report) last released its quarterly earnings data on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business’s revenue for the quarter was up 406.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.24) earnings per share. On average, research analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current year.
Insiders Place Their Bets
In other news, Director Richard N. Nottenburg sold 75,000 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director directly owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 9.50% of the stock is owned by insiders.
Hedge Funds Weigh In On Applied Digital
Several hedge funds have recently bought and sold shares of the company. Concurrent Investment Advisors LLC increased its holdings in Applied Digital by 1.5% during the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after acquiring an additional 318 shares during the period. Independent Advisor Alliance boosted its holdings in Applied Digital by 4.6% in the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after purchasing an additional 407 shares during the period. GAMMA Investing LLC grew its position in shares of Applied Digital by 28.5% during the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after purchasing an additional 464 shares in the last quarter. Krilogy Financial LLC grew its position in shares of Applied Digital by 4.1% during the 2nd quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock valued at $531,000 after purchasing an additional 561 shares in the last quarter. Finally, Vermillion Wealth Management Inc. increased its holdings in shares of Applied Digital by 29.4% in the first quarter. Vermillion Wealth Management Inc. now owns 2,563 shares of the company’s stock worth $61,000 after purchasing an additional 583 shares during the period. Hedge funds and other institutional investors own 65.67% of the company’s stock.
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.
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