Applied Digital (NASDAQ:APLD) Stock Price Down 6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 6% during trading on Wednesday. The company traded as low as $23.69 and last traded at $23.81. Approximately 40,541,363 shares traded hands during trading, an increase of 79% from the average daily volume of 22,663,783 shares. The stock had previously closed at $25.34.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Exceptional revenue growth: Fiscal Q1 2027 revenue reached $341.9 million, up 322% year over year and well above estimates near $111 million-$116 million. Adjusted revenue was approximately $300.4 million, while the adjusted loss of $0.01 per share also exceeded expectations. Applied Digital Beats Expectations in Strong Q3 CY2026
• Positive Sentiment: Capacity expansion could drive recurring revenue: Applied Digital has approximately 1.41 gigawatts of leased critical IT load and expects to bring more than 600 megawatts online over the next 12 months. Analysts highlighted $65.8 million in base rent, $64.4 million in adjusted EBITDA and roughly $36 billion of contracted revenue as evidence of operating leverage and future growth. More Than 600MW Could Drive the Next Leg of Growth
• Positive Sentiment: International AI opportunity: The company secured access to as much as 1 gigawatt of power capacity in Finland for its first international AI Factory campus, potentially expanding its ability to serve hyperscale customers. Applied Digital’s Finland AI Factory Move
• Positive Sentiment: Analyst and options support: Needham maintained a Buy rating with a $70 target after reducing its prior target, while other analysts remain bullish. Heavy call-option activity also signals speculative upside interest, although it does not guarantee future gains. Applied Digital Stock Price Target Slashed
• Neutral Sentiment: Execution remains critical: Wells Fargo said Applied Digital’s approximately 1.4-gigawatt contracted buildout is on schedule and budget, but financing and additional leasing are important upcoming catalysts. Wells Fargo Raises Applied Digital Target
• Negative Sentiment: Losses and leverage remain concerns: GAAP net loss was $184.1 million, or $0.82 per share, as investment, interest and fair-value costs increased. The company held approximately $6.4 billion of debt, making it sensitive to funding conditions and rising Treasury yields. Applied Digital Revenue Soars, Loss Widens
• Negative Sentiment: Mixed market response: Investors appear unconvinced that rapid revenue growth yet translates into sustainable profits, while data-center stocks broadly faced pressure as higher yields increased financing costs.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Needham & Company LLC cut their target price on Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday. UBS Group restated a “buy” rating on shares of Applied Digital in a research report on Thursday. B. Riley Financial restated a “buy” rating and issued a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research report on Monday, August 3rd. Finally, Northland Securities set a $82.00 price target on Applied Digital and gave the company an “outperform” rating in a research report on Wednesday, June 17th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $60.54.

Applied Digital Stock Down 1.2%

The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The company’s 50-day simple moving average is $27.07 and its two-hundred day simple moving average is $32.53. The firm has a market cap of $6.87 billion, a PE ratio of -14.38 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.31% and a negative net margin of 51.28%.The company had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the previous year, the business earned ($0.03) EPS. Applied Digital’s revenue was up 367.8% compared to the same quarter last year. On average, analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. FNY Investment Advisers LLC purchased a new stake in shares of Applied Digital in the 2nd quarter worth approximately $37,000. Osbon Capital Management LLC purchased a new position in shares of Applied Digital in the 4th quarter worth about $28,000. Bartlett & CO. Wealth Management LLC boosted its stake in 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 purchasing an additional 855 shares in the last quarter. Ancora Advisors LLC bought a new position in shares of Applied Digital in the second quarter worth approximately $56,000. Finally, Creative Financial Designs Inc. ADV boosted its stake in Applied Digital by 691.8% during the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company’s stock valued at $57,000 after purchasing an additional 1,342 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other 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.