Applied Digital (NASDAQ:APLD) Shares Up 4.8% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD)’s share price shot up 4.8% during trading on Friday . The stock traded as high as $31.72 and last traded at $31.53. 19,570,140 shares were traded during mid-day trading, a decline of 27% from the average session volume of 26,908,988 shares. The stock had previously closed at $30.09.

More Applied Digital News

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

• Positive Sentiment: Analyst/valuation pieces highlight Applied Digital’s pivot from crypto hosting to hyperscale AI data centers, noting long‑term leases and growing AI demand that could support recurring cash flows and justify higher valuation. Assessing Applied Digital (APLD) Valuation As AI Data Center Leases And Hyperscale Partnerships Gain Traction
• Positive Sentiment: Bullish retail/coverage pieces argue APLD’s strong YTD performance and growth runway leave upside — one outlet projects further multi‑month gains based on AI demand and momentum. Prediction: This Artificial Intelligence (AI) Stock That Has Jumped by Over 5x in a Year Can Still Soar by 66% or More
• Positive Sentiment: Market write‑ups emphasize differentiation (large 100+ MW sites) and note H.C. Wainwright’s reiterated Buy and $40 price target after quarterly results — supportive for sentiment and analyst‑led buying. Here’s the Impact of Applied Digital Corp (APLD) Differentiation in the Data Center Market
• Neutral Sentiment: Applied Digital granted new executive management incentive units — aligns management with long‑term performance but creates potential dilution; market reaction depends on plan size and vesting. Applied Digital Grants New Executive Management Incentive Units
• Neutral Sentiment: Broader industry/peer stories (IREN power pipeline, Babcock & Wilcox AI‑linked projects) are influencing investor appetite for AI‑infrastructure names but are not specific to APLD fundamentals. Can 4.5GW Power Pipeline Drive IREN’s $3.7B AI Cloud ARR Target? Babcock & Wilcox (BW) AI Ride Propels 191% Jump This Year
• Negative Sentiment: Analyst cuts to FY2026 EPS estimates were reported, which can pressure near‑term sentiment and imply more conservative forecasts on margin/capex given ongoing losses. FY2026 EPS Estimates for Applied Digital Cut by Analyst
• Negative Sentiment: Related report: H.C. Wainwright reduced earnings estimates (separate note), signaling downward revisions that may limit near‑term upside despite their Buy rating and $40 PT. HC Wainwright Reduces Earnings Estimates for Applied Digital

Wall Street Analyst Weigh In

A number of research firms have weighed in on APLD. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $40.00 price objective on shares of Applied Digital in a report on Thursday, April 9th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Wednesday, January 28th. Arete Research began coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a “buy” rating for the company. Finally, Roth Mkm reaffirmed a “buy” rating on shares of Applied Digital in a report on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $42.78.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The firm’s 50 day simple moving average is $28.60 and its 200-day simple moving average is $29.76. The company has a market cap of $9.01 billion, a price-to-earnings ratio of -42.61 and a beta of 7.25.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same period last year, the firm earned ($0.08) EPS. The company’s revenue for the quarter was up 139.3% compared to the same quarter last year. On average, sell-side analysts predict that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Transactions at Applied Digital

In other news, Director Chuck Hastings sold 45,987 shares of the business’s stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the transaction, the director owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. The trade was a 10.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after purchasing an additional 6,445,908 shares during the period. Situational Awareness LP grew its holdings in shares of Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock valued at $278,034,000 after purchasing an additional 5,274,905 shares during the period. Geode Capital Management LLC grew its holdings in shares of Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after purchasing an additional 304,228 shares during the period. Value Aligned Research Advisors LLC purchased a new stake in shares of Applied Digital in the fourth quarter valued at about $138,380,000. Finally, BNP Paribas Financial Markets grew its holdings in shares of Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after purchasing an additional 5,198,223 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.