Applied Digital (NASDAQ:APLD) Stock Falls 5.4% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shares were down 5.4% during mid-day trading on Thursday. The stock traded as low as $16.23 and last traded at $16.95. 23,573,681 shares traded hands during trading, an increase of 1% from the average daily volume of 23,397,238 shares. The stock had previously closed at $17.91.

Latest Applied Digital News

Investors following APLD have been watching these news items:

• Positive Sentiment: Strong results and an improved revenue outlook from AI-data-center customer CoreWeave helped revive sentiment toward data-center stocks, as investors saw evidence of continued demand and pricing power. That lift supported a rebound in APLD and its peers. Applied Digital Could Be 71% Undervalued After CoreWeave Lifted AI Sentiment
• Positive Sentiment: A construction-technology case study featuring Applied Digital and contractor McGough highlighted real-time site verification and progress toward turnover milestones on a multi-building data-center project. It offers a favorable execution signal, though the article does not announce new business or financial results. XYZ Reality and McGough’s New Documentary
• Negative Sentiment: Recent coverage highlights debt and financing risks for Applied Digital amid broader unease about AI infrastructure spending. One report also raises concerns about CoreWeave-related tenant exposure and bond stress; these are reported risks, not confirmation of a default. APLD’s elevated leverage makes financing conditions and tenant health important to monitor. Report on Applied Digital and CoreWeave Exposure

Wall Street Analysts Forecast Growth

Several analysts have weighed in on APLD shares. Wells Fargo & Company reiterated an “overweight” rating and set a $55.00 target price (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Zacks Research downgraded shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Needham & Company LLC decreased their price target 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. B. Riley Financial decreased their price target on shares of Applied Digital from $75.00 to $51.00 and set a “buy” rating for the company in a report on Friday, October 30th. Finally, Roth Capital set a $35.00 price objective on shares of Applied Digital and gave the company a “buy” rating in a research report on Wednesday, October 21st. Three 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’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $56.42.

Applied Digital Stock Down 5.4%

The firm has a market cap of $5.13 billion, a price-to-earnings ratio of -10.34 and a beta of 5.58. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock has a 50-day moving average of $22.44 and a 200-day moving average of $30.56.

Applied Digital (NASDAQ:APLD) last issued 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 analyst estimates of $116.29 million. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The firm’s revenue for the quarter was up 367.8% on a year-over-year basis. During the same period last year, the company earned ($0.03) earnings per share. As a group, sell-side analysts forecast that Applied Digital Corporation will post -2.17 EPS for the current fiscal year.

Insider Buying and Selling

In other news, President Jason Gechen Zhang bought 300,000 shares of Applied Digital stock in a transaction on Friday, October 16th. The stock was purchased at an average cost of $18.86 per share, with a total value of $5,658,000.00. Following the purchase, the president directly owned 2,839,227 shares of the company’s stock, valued at approximately $53,547,821.22. This trade represents a 11.81% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Wes Cummins bought 55,803 shares of the firm’s stock in a transaction on Friday, October 16th. The stock was purchased at an average price of $18.04 per share, with a total value of $1,006,686.12. Following the transaction, the chief executive officer owned 5,874,453 shares in the company, valued at $105,975,132.12. The trade was a 0.96% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently made changes to their positions in APLD. Whitaker Myers Wealth Managers LTD. bought a new stake in Applied Digital during the 2nd quarter valued at $1,841,000. Cambridge Investment Research Advisors Inc. boosted its position in Applied Digital by 39.6% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock worth $5,469,000 after acquiring an additional 41,562 shares during the period. Dimensional Fund Advisors LP acquired a new position in Applied Digital during the 1st quarter worth $1,970,000. Situational Awareness LP grew its stake in shares of Applied Digital by 14.1% in the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after purchasing an additional 1,906,178 shares in the last quarter. Finally, Engineers Gate Manager LP bought a new position in shares of Applied Digital in the second quarter worth $4,350,000. Institutional investors own 65.67% of the company’s stock.

About Applied Digital

Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.