Applied Digital (NASDAQ:APLD) Shares Up 6.2% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s stock price shot up 6.2% during mid-day trading on Friday . The company traded as high as $37.47 and last traded at $37.40. 31,250,246 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 44,862,645 shares. The stock had previously closed at $35.22.

Applied Digital News Summary

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

• Positive Sentiment: MarketBeat ranks APLD as the leading GPU‑as‑a‑Service play for 2026 after a blowout Q4, citing nearly 100% revenue growth, analyst upgrades and advance contracts that suggest the company’s Phase II capacity is largely sold out — a major demand signal for future revenue and margin expansion. The 5 Best GPU-as-a-Service Providers for 2026—And 1 Clear Winner
• Positive Sentiment: Management move: Applied Digital promoted co‑founder Jason Zhang to President, signaling leadership continuity and deeper founder involvement as the company scales data‑center and GPU hosting operations. This supports investor confidence on execution risk. Applied Digital Appoints Co-Founder Jason Zhang as President
• Positive Sentiment: Street momentum: APLD is highlighted in MarketBeat small‑cap features and has seen analysts lift targets and ratings following the quarter, which supports further upside if execution and contract wins continue. 5 Hot Small Caps Setting Up for Big Gains: Buy, Sell, or Hold?
• Neutral Sentiment: Industry/structural analysis: Longer‑term writeups (e.g., Seeking Alpha) discuss a “REIT angle” and capital‑structure considerations for Applied Digital’s asset‑heavy model — useful for evaluating valuation and cash flow durability but not an immediate share‑price catalyst. Applied Digital: The REIT Angle No One Talks About
• Negative Sentiment: Insider selling: Multiple director sales have been disclosed this week — Richard N. Nottenburg sold ~23,606 shares across Jan. 14–15 (SEC Form 4), and Director Douglas Miller sold 10,000 shares earlier — prompting reports of intraday weakness tied to insider activity. Investors often view clustered director sales as a short‑term negative signal even when holders remain large. Nottenburg Form 4 (Insider Sale) Miller Form 4 (Insider Sale)
• Negative Sentiment: Market reaction note: Coverage flagged a short‑term pullback after the insider sales (reports noted a ~1–2% intraday decline tied to the disclosures), underscoring that insider activity can temporarily damp momentum despite strong fundamentals. Applied Digital Trading Down Following Insider Selling

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Arete started coverage on shares of Applied Digital in a research note on Wednesday, January 7th. They set a “buy” rating on the stock. Lake Street Capital reissued a “buy” rating and issued a $45.00 price target on shares of Applied Digital in a research note on Tuesday, December 30th. Needham & Company LLC reaffirmed a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a research note on Thursday, January 8th. Northland Securities reiterated an “outperform” rating and issued a $40.00 price objective on shares of Applied Digital in a report on Tuesday, December 30th. Finally, Citigroup reissued an “outperform” rating on shares of Applied Digital in a research note on Tuesday, December 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $33.27.

Applied Digital Stock Up 6.2%

The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The company has a market capitalization of $10.46 billion, a PE ratio of -69.26 and a beta of 6.89. The business’s 50 day simple moving average is $27.82 and its 200 day simple moving average is $22.76.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). The firm had revenue of $126.59 million for the quarter, compared to analyst estimates of $82.22 million. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The firm’s quarterly revenue was up 250.1% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.06) EPS. As a group, analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $36.42, for a total value of $6,009,300.00. Following the transaction, the chief executive officer owned 4,176,329 shares of the company’s stock, valued at $152,101,902.18. This represents a 3.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $35.45, for a total value of $425,400.00. Following the sale, the director directly owned 233,378 shares of the company’s stock, valued at $8,273,250.10. The trade was a 4.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 526,641 shares of company stock valued at $18,606,039. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently made changes to their positions in the stock. MRA Advisory Group boosted its position in shares of Applied Digital by 27.2% during the 4th quarter. MRA Advisory Group now owns 54,254 shares of the company’s stock worth $1,330,000 after purchasing an additional 11,618 shares during the period. Balboa Wealth Partners acquired a new position in Applied Digital during the fourth quarter worth $872,000. Genesis Financial Group LLC purchased a new position in shares of Applied Digital during the fourth quarter worth $498,000. Victory Financial Group LLC grew its stake in shares of Applied Digital by 54.9% in the fourth quarter. Victory Financial Group LLC now owns 22,101 shares of the company’s stock valued at $542,000 after buying an additional 7,836 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC acquired a new stake in shares of Applied Digital in the fourth quarter valued at $388,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

About Applied Digital

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.