Applied Digital (NASDAQ:APLD) Stock Jumps 3.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shares were up 3.6% during mid-day trading on Tuesday. The stock traded as high as $25.67 and last traded at $25.41. Approximately 15,909,712 shares were traded during mid-day trading, a decline of 30% from the average session volume of 22,613,729 shares. The stock had previously closed at $24.53.

More Applied Digital News

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

• Positive Sentiment: Jones Trading initiated coverage with a Buy rating and a $70 price target. Other analysts have issued targets ranging from $60 to $90, with a reported median target of $79, reflecting substantial potential upside if Applied Digital executes on its data-center expansion and AI infrastructure strategy. Applied Digital analyst coverage
• Positive Sentiment: Applied Digital has highlighted a contracted backlog of roughly $31 billion, supporting the long-term growth case for its high-performance computing and artificial-intelligence data centers. Applied Digital contracted backlog
• Positive Sentiment: Management scheduled its fiscal first-quarter 2027 results and conference call for October 7. The report will provide an important update on backlog conversion, operating performance, financing needs, and demand for AI infrastructure. Applied Digital earnings announcement
• Neutral Sentiment: Analysts are divided ahead of earnings: some view APLD as materially undervalued, while others question whether its rapid share-price appreciation and large lease commitments are justified by current revenue and earnings.
• Negative Sentiment: Zacks added APLD to its Rank #5 Strong Sell list, adding to concerns about near-term earnings momentum and valuation. Zacks Strong Sell list
• Negative Sentiment: Investors are weighing a prospectus covering up to 53.1 million shares that selling stockholders may resell, creating a potential supply overhang. Reported insider activity has also consisted of sales rather than purchases.
• Negative Sentiment: Applied Digital’s latest reported quarter missed EPS expectations, despite very strong revenue growth, and the company remains unprofitable. Elevated interest rates and weakness in high-beta technology stocks are additional pressures on the shares.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Lake Street Capital upped their target price on shares of Applied Digital from $70.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Wells Fargo & Company initiated coverage on shares of Applied Digital in a research report on Thursday, September 17th. They issued an “overweight” rating and a $50.00 price objective on the stock. Wall Street Zen cut shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Finally, B. Riley Financial restated a “buy” rating and issued a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $60.88.

Applied Digital Trading Up 3.6%

The firm has a market capitalization of $7.41 billion, a P/E ratio of -28.55 and a beta of 5.72. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The firm has a 50 day moving average of $27.56 and a 200-day moving average of $32.67.

Applied Digital (NASDAQ:APLD) last released its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business’s revenue was up 406.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.24) earnings per share. On average, equities research analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value 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 trade represents a 35.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently added to or reduced their stakes in the stock. Osbon Capital Management LLC bought a new position in shares of Applied Digital in the 4th quarter valued at $28,000. Bartlett & CO. Wealth Management LLC increased its holdings in Applied Digital by 244.3% in the first 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. FNY Investment Advisers LLC acquired a new position in Applied Digital in the second quarter valued at approximately $37,000. Vermillion Wealth Management Inc. acquired a new stake in Applied Digital in the fourth quarter worth $49,000. Finally, Clearstead Advisors LLC bought a new stake in Applied Digital in the fourth quarter valued at $49,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.