Applied Digital (NASDAQ:APLD) Stock Price Down 2.8% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares were down 2.8% on Tuesday . The stock traded as low as $24.07 and last traded at $24.12. Approximately 25,380,246 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 34,723,285 shares. The stock had previously closed at $24.81.

Key Headlines Impacting Applied Digital

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

• Positive Sentiment: Applied Digital announced a proposed spin‑out of its cloud business and a non‑binding term sheet with Ekso Bionics to form ChronoScale, a focused AI/GPU cloud platform — a strategic move that could unlock value for the core data‑center business and create a pure‑play AI cloud vehicle. Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale
• Positive Sentiment: Market coverage picked up on the spin‑out, noting upward price action and “spin‑off buzz” that contributed to short‑term buying. Applied Digital Stock Moves Higher on Spin-Off Buzz
• Positive Sentiment: Coverage emphasizing the AI/cloud angle — ChronoScale as an accelerated compute platform for GPU‑heavy AI workloads — supports a positive narrative around secular demand for AI infrastructure. Applied Digital Stock Rises on AI Cloud Spinoff Plan and ChronoScale Launch
• Positive Sentiment: Northland Securities reaffirmed an “outperform” rating and set a $40 price target, signaling analyst confidence and a sizable upside vs. the recent trading level. Benzinga – Northland Securities Outperform Reaffirmed
• Positive Sentiment: Lake Street Capital also reaffirmed a “buy” rating with a $45 price target, further supporting the bullish analyst narrative. Benzinga – Lake Street Capital Buy Reaffirmed
• Neutral Sentiment: Coverage that the Ekso/Applied Digital combination is in early stages (exclusive, non‑binding term sheet) — important detail: the transaction is proposed and contingent on definitive agreements and approvals, so outcomes and timing are uncertain. Ekso Bionics Plans AI-Focused Merger With Applied Digital
• Negative Sentiment: Analysis explaining why APLD fell on Friday highlights recent volatility and potential short‑term selling pressure ahead of this new deal news — a reminder the stock can swing sharply on headlines. Why Applied Digital Stock Fell On Friday?

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Needham & Company LLC restated a “buy” rating and issued a $41.00 price objective on shares of Applied Digital in a research report on Wednesday, October 29th. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. B. Riley restated a “buy” rating on shares of Applied Digital in a report on Wednesday, October 22nd. Finally, Lake Street Capital reissued a “buy” rating and issued a $45.00 target price on shares of Applied Digital in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Applied Digital presently has a consensus rating of “Moderate Buy” and an average target price of $27.00.

Applied Digital Stock Performance

The company has a 50-day simple moving average of $28.15 and a two-hundred day simple moving average of $20.74. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a market capitalization of $6.74 billion, a P/E ratio of -21.35 and a beta of 6.95.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.08. The company had revenue of $64.22 million for the quarter, compared to analysts’ expectations of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The firm’s revenue for the quarter was up 84.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.15) earnings per share. As a group, equities analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 34,375 shares of the business’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $33.23, for a total transaction of $1,142,281.25. Following the sale, the director owned 263,612 shares of the company’s stock, valued at $8,759,826.76. The trade was a 11.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Chuck Hastings sold 50,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 29th. The stock was sold at an average price of $35.69, for a total value of $1,784,500.00. Following the completion of the sale, the director owned 451,612 shares in the company, valued at $16,118,032.28. The trade was a 9.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 328,035 shares of company stock worth $11,376,479 over the last 90 days. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently modified their holdings of the stock. Atlantic Union Bankshares Corp purchased a new stake in Applied Digital during the 2nd quarter valued at about $25,000. Larson Financial Group LLC lifted its stake in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after buying an additional 1,129 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Applied Digital during the second quarter valued at approximately $26,000. Dagco Inc. purchased a new stake in shares of Applied Digital during the third quarter valued at approximately $27,000. Finally, Evolution Wealth Management Inc. increased its position in shares of Applied Digital by 101.8% during the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock valued at $37,000 after acquiring an additional 807 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.