Applied Digital (NASDAQ:APLD) Stock Falls 14.7% – What’s Next?

Shares of Applied Digital Corporation (NASDAQ:APLD) fell 14.7% during mid-day trading on Thursday. The company traded as low as $13.12 and last traded at $14.17. 49,228,733 shares traded hands during trading, an increase of 111% from the average session volume of 23,315,865 shares. The stock had previously closed at $16.61.

Applied Digital News Roundup

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

• Positive Sentiment: APLD participated in a broader data-center stock rebound after a rival said its targeted annualized revenue of more than $4 billion was fully funded. The news may have improved sentiment toward the sector, though Applied Digital still needs to secure financing for roughly 800 megawatts of planned capacity over the next 12 months. Read More.
• Positive Sentiment: Applied Digital’s CEO was reported to have bought company shares after the stock’s decline, a potential signal of confidence from an insider. Read More.
• Neutral Sentiment: The company held its 2026 annual stockholder meeting; the brief announcement did not describe a major new business development. Read More.
• Negative Sentiment: The rebound follows a roughly 39% decline over the past month and a 40.6% drop since its latest earnings report, as investors have sold off AI data-center and infrastructure stocks. Read More.
• Negative Sentiment: Concerns about a proposed Texas pause on new data-center approvals intensified the sector selloff, even though Applied Digital’s signed leases are outside Texas. The episode highlights regulatory risk and broad investor sensitivity to data-center projects. Read More.

Wall Street Analysts Forecast Growth

APLD has been the subject of a number of analyst reports. Roth Capital set a $35.00 price target on Applied Digital and gave the stock a “buy” rating in a report on Wednesday, October 21st. Morgan Stanley set a $41.00 price objective on Applied Digital and gave the company an “equal weight” rating in a research note on Friday, October 9th. UBS Group reissued a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. Finally, 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 note on Friday, October 30th. 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 assigned a Sell rating to the stock. According to MarketBeat.com, Applied Digital presently has a consensus rating of “Moderate Buy” and an average price target of $57.75.

Applied Digital Stock Up 9.7%

The stock’s fifty day moving average is $22.92 and its two-hundred day moving average is $30.85. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The firm has a market cap of $4.70 billion, a P/E ratio of -9.48 and a beta of 5.58.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.30) by $0.29. The firm had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The business’s quarterly revenue was up 367.8% compared to the same quarter last year. During the same period last year, the firm earned ($0.03) EPS. As a group, research analysts anticipate that Applied Digital Corporation will post -2.17 earnings per share for the current year.

Insider Buying and Selling

In other Applied Digital news, CEO Wes Cummins acquired 55,803 shares of the company’s stock in a transaction that occurred on Friday, October 16th. The stock was bought at an average price of $18.04 per share, with a total value of $1,006,686.12. Following the completion of the purchase, the chief executive officer owned 5,874,453 shares of the company’s stock, valued at approximately $105,975,132.12. This represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, President Jason Gechen Zhang bought 300,000 shares of Applied Digital stock in a transaction that occurred on Friday, October 16th. The shares were acquired at an average price of $18.86 per share, with a total value of $5,658,000.00. Following the completion of the transaction, the president owned 2,839,227 shares of the company’s stock, valued at $53,547,821.22. This represents a 11.81% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 9.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Maryland State Retirement & Pension System lifted its position in Applied Digital by 19.6% during the third quarter. Maryland State Retirement & Pension System now owns 16,146 shares of the company’s stock valued at $393,000 after purchasing an additional 2,647 shares during the last quarter. Jacobi Capital Management LLC bought a new position in shares of Applied Digital in the 3rd quarter worth $126,000. International Private Wealth Advisors LLC raised its position in shares of Applied Digital by 203.3% during the 3rd quarter. International Private Wealth Advisors LLC now owns 49,674 shares of the company’s stock valued at $1,211,000 after buying an additional 33,298 shares in the last quarter. Knights of Columbus Asset Advisors LLC raised its position in shares of Applied Digital by 67.9% during the 3rd quarter. Knights of Columbus Asset Advisors LLC now owns 60,058 shares of the company’s stock valued at $1,464,000 after buying an additional 24,292 shares in the last quarter. Finally, Ethic Inc. raised its position in shares of Applied Digital by 61.8% during the 3rd quarter. Ethic Inc. now owns 18,104 shares of the company’s stock valued at $441,000 after buying an additional 6,915 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

About Applied Digital

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

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.