Shares of Applied Digital Corporation (NASDAQ:APLD – Get Free Report) fell 5.8% during mid-day trading on Friday. The company traded as low as $15.01 and last traded at $15.97. 25,389,157 shares traded hands during trading, an increase of 8% from the average session volume of 23,406,639 shares. The stock had previously closed at $16.95.
Applied Digital News Roundup
These are some of the APLD news items that stood out recently:
- Neutral Sentiment: Analyst valuation estimates remain substantially above the recent share price, but the bullish valuation case is tempered by financing concerns and the company’s premium revenue multiple. Article: Applied Digital trades at a premium revenue multiple
- Negative Sentiment: A key risk is that roughly $36 billion in contracted revenue depends on compute capacity still under construction, while funding for the buildout is not fully secured. That leaves room for delays, cost pressures or financing needs to undermine the growth outlook. Article: Prediction this data center stock will keep sliding in 2027
- Negative Sentiment: Sector-wide selling reflects investor worries about heavy data-center spending, borrowing costs, regulatory uncertainty and whether AI earnings can justify elevated valuations. Morgan Stanley also cut its price target to $25 from $41 while retaining an Equal Weight rating. Article: Morgan Stanley cuts Applied Digital target
Analyst Ratings Changes
Several analysts recently commented on APLD shares. Morgan Stanley decreased their price target on shares of Applied Digital from $41.00 to $25.00 and set an “equal weight” rating for the company in a report on Monday. Roth Capital set a $35.00 price objective on shares of Applied Digital and gave the company a “buy” rating in a research note on Wednesday, October 21st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Monday, October 19th. Wells Fargo & Company reiterated an “overweight” rating and set a $55.00 price target (up from $50.00) on shares of Applied Digital in a report on Thursday, October 8th. Finally, Zacks Research downgraded shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Digital has an average rating of “Moderate Buy” and a consensus target price of $56.42.
Get Our Latest Analysis on APLD
Applied Digital Price Performance
The stock’s 50-day moving average price is $22.29 and its 200 day moving average price is $30.47. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 3.90. The firm has a market cap of $4.83 billion, a price-to-earnings ratio of -9.74 and a beta of 5.58.
Applied Digital (NASDAQ:APLD – Get Free Report) last announced its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The company had revenue of $300.39 million for the quarter, compared to analyst estimates of $116.29 million. During the same quarter last year, the firm earned ($0.03) EPS. Applied Digital’s revenue for the quarter was up 367.8% compared to the same quarter last year. Equities research analysts predict that Applied Digital Corporation will post -2.17 earnings per share for the current year.
Insider Activity
In related news, President Jason Gechen Zhang bought 300,000 shares of the company’s stock in a transaction dated Friday, October 16th. The stock was acquired at an average cost of $18.86 per share, with a total value of $5,658,000.00. Following the acquisition, the president owned 2,839,227 shares in the company, valued at approximately $53,547,821.22. This represents a 11.81% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard Nottenburg sold 31,250 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $21.84, for a total value of $682,500.00. Following the transaction, the director owned 102,128 shares of the company’s stock, valued at $2,230,475.52. This represents a 23.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 9.50% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in shares of Applied Digital by 28.5% during the second quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock worth $78,000 after purchasing an additional 464 shares in the last quarter. Krilogy Financial LLC increased its holdings in Applied Digital by 4.1% in the second quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock valued at $531,000 after purchasing an additional 561 shares during the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Applied Digital by 4.7% in the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock valued at $497,000 after acquiring an additional 596 shares during the last quarter. Handelsbanken Fonder AB raised its holdings in Applied Digital by 1.0% in the second quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company’s stock worth $2,671,000 after purchasing an additional 700 shares during the period. Finally, Valeo Financial Advisors LLC lifted its holdings in Applied Digital by 6.7% during the third quarter. Valeo Financial Advisors LLC now owns 12,343 shares of the company’s stock worth $301,000 after acquiring an additional 773 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.
Applied Digital Company Profile
Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.
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