Applied Digital (NASDAQ:APLD) Trading Down 3% After Earnings Miss

Applied Digital Corporation (NASDAQ:APLD)’s share price traded down 3% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $25.77 and last traded at $26.38. 21,726,527 shares traded hands during trading, a decline of 11% from the average daily volume of 24,357,430 shares. The stock had previously closed at $27.19.

The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 17.53%. The company had revenue of $240.35 million for the quarter, compared to analysts’ expectations of $96.85 million. During the same period in the previous year, the business earned ($0.24) EPS. The business’s revenue was up 406.3% compared to the same quarter last year.

More Applied Digital News

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

• Positive Sentiment: Fiscal fourth-quarter revenue surged approximately 407% year over year to $258.7 million, beating Wall Street expectations. Non-GAAP earnings were $0.04 per share, also ahead of consensus, as demand for AI-focused data-center infrastructure and tenant fit-out services accelerated. Applied Digital revenue quadruples on AI data center demand
• Positive Sentiment: Management reported $36 billion of contracted lease value, up 125% year over year, and approximately 1.4 gigawatts of contracted AI capacity across five campuses. Long-term hyperscaler agreements, including business with CoreWeave, could support multi-decade revenue visibility. Applied Digital expects $1B NOI run rate
• Positive Sentiment: Applied Digital is targeting a $1 billion annual net operating income run rate within roughly one year and is pursuing lower-cost financing and additional natural-gas power generation to expand capacity. Needham reaffirmed its Buy rating and set an $83 price target, signaling substantial upside if the expansion plan succeeds. Needham reiterates Buy rating
• Neutral Sentiment: Zacks upgraded APLD from “Strong Sell” to “Hold,” reflecting improved operating momentum but insufficient conviction for a bullish rating. Zacks.com
• Negative Sentiment: The company posted a GAAP loss of $0.39 per share, missing the approximately $0.09-per-share consensus estimate by $0.30. Negative margins, negative return on equity and a debt-to-equity ratio of 1.65 underscore profitability and balance-sheet concerns despite the revenue growth. Applied Digital Q4 earnings results
• Negative Sentiment: Investors remain concerned that rapid campus construction, power procurement and reliance on external financing could pressure cash flow and dilute returns. The stock’s elevated volatility and lofty growth expectations may also be contributing to profit-taking after the earnings announcement.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on APLD shares. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Compass Point restated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Citizens Jmp raised their price target on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research report on Thursday, May 21st. Craig Hallum upped their target price on Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Finally, Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $67.15.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the company’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director directly owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 9.50% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

Institutional investors and hedge funds have recently bought and sold shares of the business. Albion Financial Group UT acquired a new position in shares of Applied Digital in the 4th quarter valued at about $25,000. Activest Wealth Management acquired a new position in Applied Digital during the fourth quarter worth $25,000. Ameriflex Group Inc. purchased a new position in Applied Digital in the 4th quarter valued at about $25,000. McMillan Office Inc. acquired a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Finally, Larson Financial Group LLC grew its holdings in shares of Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after buying an additional 1,129 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Stock Performance

The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The company has a market cap of $6.93 billion, a price-to-earnings ratio of -27.24 and a beta of 5.67. The stock’s fifty day simple moving average is $38.34 and its 200 day simple moving average is $34.52.

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.