Applied Digital (NASDAQ:APLD) Shares Down 11.5% After Insider Selling

Applied Digital Corporation (NASDAQ:APLD)’s share price was down 11.5% during trading on Friday after an insider sold shares in the company. The stock traded as low as $17.65 and last traded at $18.05. Approximately 34,568,160 shares were traded during mid-day trading, an increase of 50% from the average daily volume of 23,036,219 shares. The stock had previously closed at $20.39.

Specifically, Director Richard Nottenburg sold 31,250 shares of the business’s stock in a transaction that occurred 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 sale, the director owned 102,128 shares of the company’s stock, valued at $2,230,475.52. The trade was a 23.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Wall Street Analysts Forecast Growth

A number of research firms have commented on APLD. B. Riley Financial restated a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Needham & Company LLC dropped their price objective on Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the company a “neutral” rating in a report on Monday, September 21st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Finally, Citigroup reissued a “market outperform” rating on shares of Applied Digital in a research note on Thursday, October 8th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $62.25.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Applied Digital reported fiscal first-quarter revenue of $300.4 million, up 367.8% year over year, while its $0.01 per-share loss was substantially narrower than the $0.30 loss analysts expected. The results highlight strong demand for its data-center infrastructure. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: Analyst opinion remains broadly favorable, with a consensus “Moderate Buy” rating, although price targets and estimates vary widely. Needham lowered its target while Wells Fargo raised its target, underscoring disagreement over how much future AI growth is already reflected in the stock. Applied Digital Analyst Ratings
• Negative Sentiment: Higher bond yields and renewed scrutiny of borrowing costs are weighing on data-center companies that must finance construction before receiving customer payments. Applied Digital’s debt-to-equity ratio of approximately 3.9 increases its sensitivity to tighter credit markets. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
• Negative Sentiment: Investors are questioning whether Applied Digital can fund its expanding AI data-center buildout if lenders become more selective. Cash-burn risk and substantial construction spending could delay profitability or require additional financing. Could Applied Digital Survive Its Lenders Pulling Back?
• Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his holdings by 23.4%. Although the sale does not prove a weaker business outlook, it adds to near-term investor caution. SEC Insider Transaction Filing
• Negative Sentiment: An analyst lowered the company’s second-quarter EPS estimate, reinforcing concerns that investment and financing expenses may continue to pressure earnings. Q2 EPS Estimate Reduced

Applied Digital Stock Down 11.5%

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 stock has a market cap of $5.46 billion, a price-to-earnings ratio of -11.01 and a beta of 5.99. The business’s fifty day moving average is $26.34 and its two-hundred day moving average is $32.37.

Applied Digital (NASDAQ:APLD) last announced its earnings results 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. The firm had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The firm’s revenue for the quarter was up 367.8% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.03) EPS. Equities analysts forecast that Applied Digital Corporation will post -2.06 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Applied Digital

Several institutional investors have recently modified their holdings of the business. Situational Awareness LP increased its position in shares of Applied Digital by 14.1% during the second 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 period. Equitec Proprietary Markets LLC purchased a new position in Applied Digital in the second quarter valued at $312,349,000. Hsbc Holdings PLC boosted its holdings 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 purchasing an additional 72,460 shares during the period. Sei Investments Co. grew its stake in Applied Digital by 33.0% during the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock worth $25,964,000 after purchasing an additional 271,618 shares in the last quarter. Finally, Janus Henderson Group PLC grew its stake in Applied Digital by 318.5% during the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock worth $18,638,000 after purchasing an additional 597,548 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 (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.