Key Points
- Director Richard Nottenburg sold 31,250 Applied Digital shares at an average price of $21.84, generating approximately $682,500 and reducing his stake by 23.4% to 102,128 shares.
- Applied Digital reported stronger-than-expected quarterly results, with revenue rising 367.8% year over year to $300.39 million and a loss of $0.01 per share versus analysts’ expected $0.30 loss.
- The stock faces mixed signals: analysts maintain a “Moderate Buy” consensus with a $62.25 average price target, while high leverage, financing costs and continued construction spending raise concerns about profitability and funding.
Applied Digital Corporation (NASDAQ:APLD - Get Free Report) Director Richard Nottenburg sold 31,250 shares of the business's stock in a transaction that occurred on 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 $2,230,475.52. This trade represents a 23.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.
Applied Digital Stock Performance
Applied Digital stock opened at $20.39 on Friday. The business has a fifty day moving average of $26.34 and a two-hundred day moving average of $32.37. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56. Applied Digital Corporation has a twelve month low of $18.36 and a twelve month high of $50.72.
Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analysts' expectations of $116.29 million. During the same quarter last year, the firm earned ($0.03) EPS. The business's revenue for the quarter was up 367.8% on a year-over-year basis. On average, research analysts predict that Applied Digital Corporation will post -2.06 EPS for the current fiscal year.
Analyst Upgrades and Downgrades
A number of equities research analysts recently weighed in on the company. Needham & Company LLC dropped their price objective on Applied Digital from $83.00 to $70.00 and set a "buy" rating on the stock in a research report on Thursday, October 8th. Wells Fargo & Company reiterated an "overweight" rating and issued a $55.00 target price (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Rothschild & Co Redburn set a $22.00 target price on shares of Applied Digital and gave the stock a "neutral" rating in a report on Monday, September 21st. Zacks Research downgraded shares of Applied Digital from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 26th. Finally, Citigroup reissued a "market outperform" rating on shares of Applied Digital in a research report on Thursday, October 8th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $62.25.
View Our Latest Research Report on Applied Digital
Key Applied Digital News
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Applied Digital’s latest quarter showed revenue of $300.4 million, up 367.8% year over year, while its $0.01 per-share loss was substantially better than the $0.30 loss analysts expected. The results demonstrate strong demand and significant operating growth. Applied Digital Fiscal Q1 2027 Revenue Surges
- Neutral Sentiment: Analysts continue to debate whether Applied Digital’s valuation is justified by its current sales, particularly as the company commits substantial capital to large AI data-center projects. The stock’s previous multiyear gains have increased scrutiny of its revenue outlook. Applied Digital Stock Looks Fully Priced
- Negative Sentiment: Higher bond yields and renewed concern about borrowing costs have pressured data-center developers that must spend heavily before receiving customer payments. Applied Digital’s debt-to-equity ratio is approximately 3.9, making financing conditions particularly important for shareholders. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
- Negative Sentiment: Investors are questioning whether Applied Digital can fund ongoing construction if lenders become more selective. Articles highlight cash-burn risk, expanding construction commitments and the possibility of tighter credit markets. Could Applied Digital Survive Its Lenders Pulling Back?
- Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his position by 23.4%. While insider sales do not necessarily indicate a deteriorating business outlook, the transaction adds to near-term investor caution. SEC Insider Transaction Filing
- Negative Sentiment: An analyst reduced the company’s second-quarter EPS estimate, reinforcing concerns that heavy investment and financing expenses may continue to weigh on profitability. Q2 EPS Estimate Reduced
Institutional Investors Weigh In On Applied Digital
Several institutional investors have recently bought and sold shares of APLD. Situational Awareness LP boosted its stake in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after acquiring an additional 2,139,378 shares in the last quarter. Equitec Proprietary Markets LLC purchased a new position in Applied Digital in the second quarter worth $312,349,000. Hsbc Holdings PLC purchased a new position in Applied Digital in the fourth quarter worth $29,510,000. Sei Investments Co. increased its position in shares of Applied Digital by 33.0% during the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock worth $25,964,000 after purchasing an additional 271,618 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Applied Digital by 32.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company's stock worth $21,681,000 after purchasing an additional 143,308 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.
About Applied Digital
(
Get Free Report)
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.
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