Applied Digital (NASDAQ:APLD) Shares Up 2.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shot up 2.6% on Monday . The stock traded as high as $26.17 and last traded at $25.19. 17,730,708 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 26,923,695 shares. The stock had previously closed at $24.56.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Q3 beat: Applied Digital reported $0.09 EPS vs. consensus -$0.13 and revenue of $108.6M vs. ~$78.5M, a clear surprise that underpins the stock rally. Press Release
• Positive Sentiment: Demand tailwinds: Reuters notes the revenue beat was driven by steady enterprise demand for data-center colocation and services supporting generative AI workloads, signaling durable top-line momentum. Applied Digital beats quarterly revenue estimates
• Neutral Sentiment: Operational update & results filing: GlobeNewswire release summarizes the quarter and operational progress on the company’s AI-focused campuses and capacity buildouts—useful for tracking execution and future revenue ramps. Applied Digital Reports Fiscal Third Quarter 2026 Results
• Neutral Sentiment: Pre-earnings positioning and sentiment: previews and analyst pieces flagged Q3 as a binary event and helped position momentum into the print; short/inverse product interest has risen in recent days. Earnings preview
• Negative Sentiment: Margin & profitability concerns: despite the beat, Applied Digital reported a negative net margin (~-43%) and negative ROE; profitability remains weak which keeps valuation fragile. Press Release
• Negative Sentiment: Rising debt & interest costs: multiple analyst pieces warn that rapid expansion and higher interest expense could outpace cash flow, pressuring margins and execution risk on the remaining buildout commitments. Can APLD Navigate Rising Interest Costs?
• Negative Sentiment: Geopolitical & supply risks: coverage flagged supply-chain exposure tied to geopolitical tensions (e.g., Iran war) that could disrupt equipment deliveries and timelines for capacity ramps. Balance Debt Costs

Analyst Ratings Changes

Several brokerages have recently weighed in on APLD. Freedom Capital upgraded Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Roth Mkm reiterated a “buy” rating on shares of Applied Digital in a research report on Tuesday, February 17th. Wall Street Zen upgraded Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Northland Securities set a $56.00 price target on Applied Digital in a research report on Wednesday, January 28th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $41.00 price target on shares of Applied Digital in a research report on Thursday, January 8th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $37.00.

Applied Digital Stock Performance

The company has a 50-day moving average of $29.53 and a 200 day moving average of $29.48. The company has a quick ratio of 4.82, a current ratio of 4.82 and a debt-to-equity ratio of 1.79. The firm has a market capitalization of $7.77 billion, a PE ratio of -51.46 and a beta of 7.25.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, April 8th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of ($0.13) by $0.22. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The business had revenue of $108.55 million during the quarter, compared to analysts’ expectations of $78.47 million. Equities research analysts predict that Applied Digital Corporation will post -0.96 EPS for the current year.

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 12,000 shares of the business’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the completion of the transaction, the director directly owned 233,378 shares in the company, valued at $8,273,250.10. The trade was a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $36.42, for a total value of $6,009,300.00. Following the completion of the transaction, the chief executive officer owned 4,176,329 shares of the company’s stock, valued at $152,101,902.18. The trade was a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 244,593 shares of company stock valued at $9,003,278 in the last ninety days. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Newbridge Financial Services Group Inc. boosted its holdings in shares of Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC boosted its holdings in shares of Applied Digital by 1.5% in the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after purchasing an additional 318 shares in the last quarter. Brookstone Capital Management boosted its holdings in shares of Applied Digital by 3.6% in the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock worth $227,000 after purchasing an additional 321 shares in the last quarter. ProShare Advisors LLC lifted its stake in shares of Applied Digital by 1.0% in the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock valued at $841,000 after acquiring an additional 376 shares during the last quarter. Finally, Independent Advisor Alliance lifted its stake in shares of 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 acquiring an additional 407 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

Applied Digital Company Profile

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.