Applied Digital (NASDAQ:APLD) Trading Up 16.5% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD) shares shot up 16.5% on Friday . The stock traded as high as $27.89 and last traded at $27.85. 37,619,987 shares traded hands during trading, an increase of 7% from the average session volume of 35,144,125 shares. The stock had previously closed at $23.90.

Applied Digital News Summary

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

• Positive Sentiment: Secured development financing with Macquarie to fund new AI “factory” campuses — provides committed capital to cover pre‑lease development costs, de‑risking growth and accelerating capacity buildout for hyperscaler and AI customers. Applied Digital Completes Development Loan Facility with Macquarie Group to Support New AI Factory Campuses
• Positive Sentiment: Company announced a separate fundraising (reported as ~$100M) that boosts liquidity to fund projects and reduces immediate capital risk — a primary driver of the intraday rebound. Applied Digital (APLD) Rebounds 8.6% on $100-Million Fundraising
• Positive Sentiment: Investor commentary and media coverage highlight the closed loan facility and partner traction (e.g., CoreWeave), reinforcing the narrative of 2025 share gains tied to hyperscaler/AI demand. Overlooked Stock: APLD Closes Loan Facility for New Data Centers
• Neutral Sentiment: Applied Digital scheduled its fiscal Q2 2026 earnings call for Jan 7 — investors will watch guidance, revenue traction from new campuses, and lease/pre‑lease progress for clearer near‑term outlook. Applied Digital Sets Fiscal Second Quarter 2026 Conference Call for Wednesday, January 7, 2026
• Neutral Sentiment: Analyst piece compares APLD to Dell (DELL) on AI infrastructure upside — highlights differing strategies (APLD = niche hyperscaler/colocation + build‑to‑suit vs. Dell = integrated hardware/software stack); useful context for longer‑term relative positioning but not an immediate catalyst. APLD vs. DELL: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Some investment firms expressed growing concerns about the sustainability of AI demand and valuations, which triggered a pullback before today’s rebound — a reminder that sentiment and valuation risk can produce sharp swings in APLD’s high‑beta stock. Applied Digital (APLD) Falls 9% on Investment Firms’ Growing AI Concerns

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on APLD shares. B. Riley reaffirmed a “buy” rating on shares of Applied Digital in a report on Wednesday, October 22nd. Compass Point assumed coverage on Applied Digital in a research report on Monday, September 15th. They set a “buy” rating for the company. Needham & Company LLC restated a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a research note on Wednesday, October 29th. Craig Hallum increased their target price on Applied Digital to $39.00 and gave the stock a “buy” rating in a research report on Thursday, October 23rd. Finally, HC Wainwright boosted their price target on shares of Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a report on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Performance

The company has a market cap of $7.78 billion, a P/E ratio of -24.65 and a beta of 6.94. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The company has a 50 day moving average price of $29.34 and a 200-day moving average price of $20.15.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. The business had revenue of $64.22 million for the quarter, compared to analysts’ expectations of $52.25 million. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The company’s revenue was up 84.3% on a year-over-year basis. During the same period in the previous year, the business earned ($0.15) earnings per share. Equities analysts expect that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Ella G. Benson sold 42,569 shares of the stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total value of $1,502,685.70. Following the completion of the transaction, the director directly owned 69,256 shares in the company, valued at $2,444,736.80. This trade represents a 38.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of the business’s stock in a transaction that occurred on Tuesday, October 28th. The stock was sold at an average price of $36.47, for a total value of $1,367,734.41. Following the sale, the chief financial officer directly owned 121,409 shares in the company, valued at approximately $4,427,786.23. The trade was a 23.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 328,035 shares of company stock worth $11,376,479. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several institutional investors have recently modified their holdings of the company. Atlantic Union Bankshares Corp acquired a new position in Applied Digital during the second quarter worth about $25,000. Larson Financial Group LLC lifted its holdings in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after acquiring an additional 1,129 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Applied Digital during the 2nd quarter valued at about $26,000. Dagco Inc. bought a new position in shares of Applied Digital during the 3rd quarter valued at about $27,000. Finally, PNC Financial Services Group Inc. acquired a new position in shares of Applied Digital in the 1st quarter worth approximately $28,000. Institutional investors and hedge funds 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.