Applied Digital (NASDAQ:APLD) Stock Price Up 4.9% – Still a Buy?

Applied Digital Corporation (NASDAQ:APLD) rose 4.9% during trading on Wednesday . The stock traded as high as $33.04 and last traded at $31.15. 18,535,142 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 24,110,102 shares. The stock had previously closed at $29.69.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Strong demand for AI infrastructure is supporting the broader data-center and “neocloud” sector. Forecasts from CoreWeave, Super Micro Computer and Nebius indicate that demand for computing capacity remains robust, a trend that could benefit Applied Digital as it develops AI-focused data-center capacity. CoreWeave Jumps 18% as AI Capacity Sells Out
• Positive Sentiment: Applied Digital is part of a broader group of former cryptocurrency-mining operators pivoting toward AI infrastructure. Industry activity, including large data-center leasing and power agreements announced by peers such as Riot Platforms, reinforces the potential value of Applied Digital’s power and data-center assets. CoreWeave’s Record Q2 Supercharges Nebius Stock
• Neutral Sentiment: Recent commentary presents a wide range of potential outcomes for APLD, with a bullish scenario near $68 and a bearish scenario near $16. The unusually broad range highlights both the company’s AI-growth opportunity and the uncertainty surrounding its execution, financing and valuation. Applied Digital Stock Prediction
• Negative Sentiment: Analysts caution that Applied Digital’s 101% one-year rally may have outpaced its fundamentals. Heavy capital needs, high debt, increasing competition, weaker earnings estimates and an expensive valuation could limit further upside. APLD Surges 101% in a Year: Should You Buy, Sell or Hold?
• Negative Sentiment: The latest earnings profile remains a concern: Applied Digital continues to report losses, and its most recent quarterly EPS missed consensus despite sharply higher revenue. Ongoing execution and financing risk have cooled near-term enthusiasm, with the stock down over the past month and quarter. What Is Behind the Fresh Attention on Applied Digital?

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Citizens Jmp lifted their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Thursday, May 21st. Compass Point restated a “buy” rating and set a $70.00 target price on shares of Applied Digital in a report on Friday, May 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Lucid Cap Mkts raised shares of Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Finally, Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Applied Digital has an average rating of “Moderate Buy” and a consensus target price of $68.15.

Applied Digital Stock Up 4.9%

The company has a market capitalization of $9.08 billion, a price-to-earnings ratio of -35.00 and a beta of 5.75. The firm’s 50 day moving average price is $34.74 and its two-hundred day moving average price is $33.99. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88.

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

Insider Activity

In other news, Director Richard N. Nottenburg sold 75,000 shares of the firm’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 value of $2,336,250.00. Following the completion of the sale, the director directly owned 133,378 shares of the company’s stock, valued at $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 9.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cannon Capital Management Inc. acquired a new stake in shares of Applied Digital during the fourth quarter worth $3,635,000. Mirae Asset Global Investments Co. Ltd. bought a new position in Applied Digital during the fourth quarter worth about $2,674,000. Whitaker Myers Wealth Managers LTD. acquired a new stake in Applied Digital in the 2nd quarter worth about $1,841,000. M&T Bank Corp bought a new stake in Applied Digital in the 4th quarter valued at about $2,232,000. Finally, TFR Capital LLC. bought a new stake in Applied Digital in the 4th quarter valued at about $1,741,000. 65.67% of the stock is 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.