Applied Digital (NASDAQ:APLD) Stock Price Down 9% After Analyst Downgrade

Applied Digital Corporation (NASDAQ:APLD) shares dropped 9% during mid-day trading on Monday after B. Riley Financial lowered their price target on the stock from $75.00 to $51.00. B. Riley Financial currently has a buy rating on the stock. Applied Digital traded as low as $16.16 and last traded at $16.22. Approximately 23,197,177 shares traded hands during trading, an increase of 0% from the average daily volume of 23,136,596 shares. The stock had previously closed at $17.82.

A number of other research analysts have also recently weighed in on the stock. Needham & Company LLC dropped their price objective on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a report on Thursday, October 8th. Roth Capital set a $35.00 target price on shares of Applied Digital and gave the stock a “buy” rating in a report on Wednesday, October 21st. Wells Fargo & Company reissued an “overweight” rating and issued a $55.00 price target (up from $50.00) on shares of Applied Digital in a research report on Thursday, October 8th. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Thursday, October 8th. Finally, Wall Street Zen lowered Applied Digital from a “sell” rating to a “strong sell” rating in a research report 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 issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $57.75.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 31,250 shares of the business’s stock in a transaction dated 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 directly owned 102,128 shares of the company’s stock, valued at approximately $2,230,475.52. The trade was a 23.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Wes Cummins bought 55,803 shares of the business’s stock in a transaction that occurred on Friday, October 16th. The shares were purchased at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the completion of the purchase, the chief executive officer directly owned 5,874,453 shares of the company’s stock, valued at approximately $105,975,132.12. This trade represents a 0.96% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 9.50% of the stock is owned by corporate insiders.

More Applied Digital News

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

• Positive Sentiment: Applied Digital is highlighted as a potential long-term beneficiary of the AI infrastructure boom, with rapid expansion aimed at supporting high-performance computing and large AI Factory campuses. The comparison with IREN suggests APLD may offer significant growth if it successfully converts its infrastructure buildout into contracted AI revenue. Applied Digital vs. IREN: Which Technology Stock Is a Better Buy for 2027?
• Positive Sentiment: Applied Digital was included among stocks trading near long-term lows that could rebound as AI monetization, backlog growth and cash-flow prospects improve. This supports the bullish case for investors willing to tolerate elevated execution and financing risk. 5 Stocks to Buy in November: Bargains Worth Giving Thanks For
• Neutral Sentiment: Coverage of the broader data-center sector, including Core Scientific’s shift from Bitcoin mining to AI colocation, shows that investors remain interested in the opportunity but are increasingly focused on debt and funding requirements across the industry. Core Scientific vs. CIFR and WULF
• Negative Sentiment: CEO comments that approximately 800 megawatts of planned capacity still needs financing revived concerns about how Applied Digital will fund its AI data-center expansion. The uncertainty is especially significant given the capital-intensive nature of the projects and the company’s high leverage. Applied Digital Slumps as CEO Says 800 MW Still Needs Financing
• Negative Sentiment: Recent analyst actions added pressure: B. Riley Financial cut its price target, while another report cited an analyst downgrade. Separate commentary also pointed to large lease obligations and a challenging capital structure, reinforcing concerns about dilution, borrowing costs and execution risk. Applied Digital Stock Gets Price Target Cut

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Covestor Ltd grew its stake in shares of Applied Digital by 8,660.4% during the third quarter. Covestor Ltd now owns 18,134 shares of the company’s stock worth $442,000 after purchasing an additional 17,927 shares in the last quarter. Integrity Alliance LLC. purchased a new position in Applied Digital in the third quarter valued at $252,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Applied Digital in the third quarter valued at $3,666,000. Americana Partners LLC raised its stake in Applied Digital by 15.4% in the third quarter. Americana Partners LLC now owns 11,266 shares of the company’s stock valued at $275,000 after buying an additional 1,500 shares in the last quarter. Finally, State of Wyoming raised its stake in Applied Digital by 210.4% in the third quarter. State of Wyoming now owns 6,230 shares of the company’s stock valued at $152,000 after buying an additional 4,223 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Stock Performance

The company has a market capitalization of $4.90 billion, a price-to-earnings ratio of -9.89 and a beta of 5.59. 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 stock has a 50 day simple moving average of $24.06 and a two-hundred day simple moving average of $31.35.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $300.39 million during the quarter, compared to analysts’ expectations of $116.29 million. During the same period in the prior year, the firm posted ($0.03) EPS. The business’s quarterly revenue was up 367.8% compared to the same quarter last year. As a group, analysts anticipate that Applied Digital Corporation will post -2.17 earnings per share for the current year.

About Applied Digital

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.