Applied Digital Corporation (NASDAQ:APLD – Get Free Report) was down 3.5% on Tuesday. The company traded as low as $21.44 and last traded at $22.44. Approximately 27,793,206 shares traded hands during trading, an increase of 22% from the average session volume of 22,874,234 shares. The stock had previously closed at $23.25.
Key Applied Digital News
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Applied Digital’s fiscal first-quarter revenue surged more than 300% year over year, highlighting strong demand for its data-center infrastructure and supporting the long-term growth case. However, the company remains loss-making and rental revenue is still a relatively small portion of total sales. Applied Digital Fiscal Q1 2027 Revenue Surges
- Neutral Sentiment: Analysts and investors are questioning whether Applied Digital’s valuation is fully supported by its current sales, particularly after the stock’s substantial multi-year appreciation and recent pullback. Heavy spending on large AI data-center projects makes future revenue growth essential to justify the valuation. Applied Digital Stock Looks Fully Priced on Current Sales
- Negative Sentiment: Financing risk is the main catalyst weighing on APLD. The company borrows heavily to build facilities before receiving rental payments, leaving earnings and project economics sensitive to higher interest rates, tighter credit markets and lender reluctance. Similar pressure is affecting other AI data-center developers. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
- Negative Sentiment: Higher inflation and bond yields are increasing the cost of capital, while an analyst reduction to the company’s second-quarter EPS estimate adds to concerns about near-term profitability. The stock’s move toward a one-year low reflects investors’ reduced tolerance for Applied Digital’s leverage and continued construction spending. Q2 EPS Estimate for Applied Digital Reduced by Analyst
Wall Street Analyst Weigh In
A number of research analysts have recently commented on the company. Wells Fargo & Company restated an “overweight” rating and issued a $55.00 target price (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Wall Street Zen cut Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Morgan Stanley set a $41.00 price target on shares of Applied Digital and gave the company an “equal weight” rating in a report on Friday, October 9th. UBS Group reissued a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Finally, Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $62.25.
Read Our Latest Analysis on APLD
Applied Digital Trading Up 0.3%
The business has a 50 day moving average of $26.51 and a 200 day moving average of $32.40. 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 $6.17 billion, a price-to-earnings ratio of -12.44 and a beta of 5.99.
Applied Digital (NASDAQ:APLD – Get Free Report) last announced its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. 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 business earned ($0.03) EPS. Applied Digital’s revenue for the quarter was up 367.8% on a year-over-year basis. On average, research analysts forecast that Applied Digital Corporation will post -1.93 earnings per share for the current fiscal year.
Insider Buying and Selling at Applied Digital
In related 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 transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares in the company, valued at $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.50% of the stock is owned by insiders.
Institutional Inflows and Outflows
Several large investors have recently bought and sold shares of APLD. Situational Awareness LP boosted its position in Applied Digital by 14.1% during the 2nd quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after acquiring an additional 1,906,178 shares during the last quarter. Equitec Proprietary Markets LLC acquired a new position in Applied Digital in the 2nd quarter valued at $312,349,000. Hsbc Holdings PLC increased its stake in Applied Digital by 6.2% in the first quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company’s stock valued at $28,377,000 after acquiring an additional 72,460 shares during the last quarter. Sei Investments Co. raised its position in Applied Digital by 33.0% during the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after purchasing an additional 271,618 shares in the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Applied Digital by 318.5% in the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock valued at $18,638,000 after purchasing an additional 597,548 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.
About Applied Digital
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.
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