Applied Digital (NASDAQ:APLD) Shares Down 1.7% – Here’s What Happened

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 1.7% on Thursday . The stock traded as low as $30.45 and last traded at $30.62. 16,000,637 shares were traded during trading, a decline of 34% from the average daily volume of 24,067,598 shares. The stock had previously closed at $31.15.

Applied Digital News Roundup

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

• Positive Sentiment: AI infrastructure demand remains a supportive industry catalyst. CoreWeave, Nebius and Super Micro rallied after upbeat forecasts highlighted sustained demand for computing capacity, potentially benefiting data-center operators such as Applied Digital. CoreWeave Jumps 18% as AI Capacity Sells Out
• Positive Sentiment: A reported 20-year, $9.1 billion Anthropic lease at a competing data-center project underscores the potential scale and durability of AI hosting contracts. The development reinforces the strategic shift by infrastructure providers from cryptocurrency mining toward AI data centers, although it is not a direct Applied Digital contract announcement. Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
• Neutral Sentiment: Applied Digital is expected to release earnings on Thursday. Investors will likely focus on data-center capacity expansion, customer contracts, cash requirements, debt and the company’s path toward profitability. Applied Digital to Release Earnings on Thursday
• Negative Sentiment: Zacks added APLD to its Rank #5 “Strong Sell” list, adding near-term pressure and reflecting unfavorable analyst or earnings trends. New Strong Sell Stocks for August 13th
• Negative Sentiment: A review of Applied Digital’s 101% one-year rally warns that heavy capital needs, high debt, competition, weaker earnings estimates and an expensive valuation could limit further upside. These concerns are particularly important because the company remains unprofitable and has recently missed earnings expectations despite rapid revenue growth. APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?

Wall Street Analysts Forecast Growth

APLD has been the subject of several research analyst reports. Citizens Jmp boosted their target price on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Compass Point restated a “buy” rating and issued a $70.00 price target on shares of Applied Digital in a research note on Friday, May 22nd. Wall Street Zen lowered shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Saturday, August 8th. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $68.15.

Applied Digital Stock Performance

The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The company’s 50-day simple moving average is $34.47 and its 200-day simple moving average is $33.97. The stock has a market capitalization of $8.92 billion, a price-to-earnings ratio of -34.40 and a beta of 5.75.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same quarter last year, the firm posted ($0.24) EPS. Applied Digital’s revenue for the quarter was up 406.3% on a year-over-year basis. On average, analysts expect that Applied Digital Corporation will post -1.09 EPS for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 75,000 shares of Applied Digital stock in a transaction dated 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 directly owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds have recently made changes to their positions in the stock. Concurrent Investment Advisors LLC lifted its holdings in Applied Digital by 1.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after acquiring an additional 318 shares during the period. Independent Advisor Alliance grew its stake in Applied Digital by 4.6% in the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after purchasing an additional 407 shares during the period. GAMMA Investing LLC increased its position in shares of Applied Digital by 28.5% during the 2nd quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after purchasing an additional 464 shares during the last quarter. Krilogy Financial LLC increased its position in shares of Applied Digital by 4.1% during the 2nd quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock valued at $531,000 after purchasing an additional 561 shares during the last quarter. Finally, Vermillion Wealth Management Inc. raised its stake in shares of Applied Digital by 29.4% during the 1st quarter. Vermillion Wealth Management Inc. now owns 2,563 shares of the company’s stock worth $61,000 after purchasing an additional 583 shares during the period. 65.67% of the stock is currently owned by institutional investors.

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.