Applied Digital (NASDAQ:APLD) Hits New 1-Year Low After Insider Selling

Applied Digital Corporation (NASDAQ:APLD) hit a new 52-week low during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $18.70 and last traded at $18.6320, with a volume of 6,138,776 shares. The stock had previously closed at $20.33.

Specifically, Director Richard Nottenburg sold 31,250 shares of the company’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 transaction of $682,500.00. Following the completion of the transaction, the director owned 102,128 shares of the company’s stock, valued at $2,230,475.52. This represents a 23.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. B. Riley Financial restated a “buy” rating and set a $75.00 target price (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Needham & Company LLC decreased their target price on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday, October 8th. Rothschild & Co Redburn set a $22.00 price target on shares of Applied Digital and gave the company a “neutral” rating in a research note on Monday, September 21st. Finally, Wall Street Zen lowered shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $62.25.

Key Applied Digital News

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 significantly narrower than the $0.30 loss analysts expected. The strong growth highlights continued demand for its data-center infrastructure. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: Analysts remain broadly constructive, with Applied Digital carrying a “Moderate Buy” consensus rating and an average price target of $62.25. However, targets vary widely, reflecting uncertainty over how quickly new AI facilities will generate profitable revenue. Applied Digital Analyst Ratings
• Negative Sentiment: Higher bond yields and renewed scrutiny of financing costs are weighing on data-center developers that borrow heavily to build facilities before receiving customer payments. Applied Digital’s debt-to-equity ratio of approximately 3.9 increases its sensitivity to tighter credit conditions. Rotation Out of Debt-Funded AI Builders
• Negative Sentiment: Investors are increasingly focused on cash burn and whether lenders will continue funding Applied Digital’s expanding construction pipeline. The concern is that additional debt or less favorable financing could pressure profitability and shareholder returns. Applied Digital Funding Risks
• Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his holdings by 23.4%. Although one insider sale is not necessarily a signal of deteriorating fundamentals, 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 construction spending, financing costs and ongoing losses may continue to weigh on earnings. Reduced Applied Digital EPS Estimate

Applied Digital Stock Down 11.5%

The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56. The firm has a 50-day moving average of $26.11 and a 200 day moving average of $32.27. The stock has a market capitalization of $5.46 billion, a price-to-earnings ratio of -11.01 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last posted 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 return on equity of 27.21% and a negative net margin of 51.28%. The firm had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same period last year, the company earned ($0.03) earnings per share. The business’s revenue was up 367.8% compared to the same quarter last year. As a group, sell-side 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 hedge funds and other institutional investors have recently made changes to their positions in the company. Situational Awareness LP increased its holdings in 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 buying an additional 1,906,178 shares during the last quarter. Equitec Proprietary Markets LLC bought a new stake in Applied Digital during the second quarter worth $312,349,000. Hsbc Holdings PLC raised its position in Applied Digital by 6.2% during the first quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company’s stock worth $28,377,000 after acquiring an additional 72,460 shares in the last quarter. Sei Investments Co. lifted its stake in Applied Digital by 33.0% in the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after acquiring an additional 271,618 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its stake in Applied Digital by 318.5% in the first quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock valued at $18,638,000 after acquiring an additional 597,548 shares during the last quarter. 65.67% of the stock is owned by institutional investors.

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.