Applied Digital (NASDAQ:APLD) Shares Down 5.4% – Here’s What Happened

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

More Applied Digital News

Here’s some of the latest news about APLD:

• 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
• Neutral Sentiment: Google’s plans for major data-center investment in Finland and Norway underscore ongoing AI infrastructure demand, but also show hyperscalers are weighing locations with abundant power and supportive permitting. The report does not identify a direct impact on Applied Digital’s projects. Google’s $13 Billion Nordic Bet
• 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 Analyst Weigh In

A number of analysts have recently weighed in on APLD shares. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $55.00 price target (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Morgan Stanley lowered their price objective on shares of Applied Digital from $41.00 to $25.00 and set an “equal weight” rating on the stock in a research note on Monday. UBS Group reissued a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. B. Riley Financial cut their target price on Applied Digital from $75.00 to $51.00 and set a “buy” rating for the company in a research report on Friday, October 30th. Finally, Roth Capital set a $35.00 price target on Applied Digital and gave the company a “buy” rating in a research note on Wednesday, October 21st. Three 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 issued a Sell rating to the company. According to MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and a consensus price target of $56.42.

Applied Digital Trading Down 5.4%

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 business has a fifty day moving average of $22.44 and a 200-day moving average of $30.56. The stock has a market capitalization of $5.13 billion, a price-to-earnings ratio of -10.34 and a beta of 5.58.

Applied Digital (NASDAQ:APLD) last issued 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 net margin of 51.28% and a negative return on equity of 27.21%. The company had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same period in the prior year, the company earned ($0.03) EPS. Applied Digital’s revenue was up 367.8% on a year-over-year basis. On average, equities analysts anticipate that Applied Digital Corporation will post -2.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 31,250 shares of Applied Digital stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $21.84, for a total value of $682,500.00. Following the transaction, the director owned 102,128 shares in the company, valued at approximately $2,230,475.52. The trade was a 23.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Wes Cummins purchased 55,803 shares of the firm’s stock in a transaction on Friday, October 16th. The stock was acquired at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the transaction, the chief executive officer owned 5,874,453 shares of the company’s stock, valued at $105,975,132.12. The trade was a 0.96% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently modified their holdings of APLD. FNY Investment Advisers LLC bought a new stake in shares of Applied Digital during the 2nd quarter worth $37,000. Bartlett & CO. Wealth Management LLC grew its holdings in shares of Applied Digital by 244.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company’s stock worth $29,000 after acquiring an additional 855 shares during the last quarter. Ancora Advisors LLC acquired a new stake in shares of Applied Digital during the second quarter worth $56,000. Creative Financial Designs Inc. ADV raised its position in shares of Applied Digital by 691.8% during the second quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock worth $57,000 after purchasing an additional 1,342 shares during the period. Finally, Advisors Asset Management Inc. acquired a new stake in shares of Applied Digital during the third quarter worth $43,000. Institutional investors and hedge funds 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.