Applied Digital (NASDAQ:APLD) Stock Price Up 10.3% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD)’s stock price traded up 10.3% during trading on Tuesday. The stock traded as high as $17.87 and last traded at $17.8840. Approximately 12,822,591 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 23,088,988 shares. The stock had previously closed at $16.22.

Key Applied Digital News

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

• Positive Sentiment: Applied Digital shares rebounded alongside IREN and Nebius as investors returned to AI infrastructure stocks after the sector’s recent financing-driven decline. The move suggests some short-term relief in sentiment, although funding concerns remain unresolved. Applied Digital Surges 9% as AI Data Center Stocks Rebound From Financing Jitters
• Positive Sentiment: Some analysts and financial commentators view Applied Digital as a potential bargain near its long-term lows, citing its expanding high-performance-computing capacity, AI data-center opportunity and potential for improved monetization and cash flow. 5 Stocks to Buy in November
• Neutral Sentiment: A comparison with IREN highlights Applied Digital’s rapid expansion into AI infrastructure and planned AI Factory campuses. The opportunity is substantial, but investors must weigh execution and financing risks against the potential growth. Applied Digital vs. IREN
• Negative Sentiment: Applied Digital’s CEO indicated that approximately 800 megawatts of planned capacity still requires financing. That disclosure triggered a major decline and renewed concerns that the company may need substantial capital before fully realizing its AI data-center growth plans. Applied Digital Slumps as 800 MW Still Needs Financing
• Negative Sentiment: Reports point to a heavy capital structure, including large lease obligations and interest costs that may exceed rental revenue. High leverage increases refinancing and dilution risk as the company funds its expansion. Applied Digital Interest Costs and Financing Gap
• Negative Sentiment: Analysts are questioning whether Applied Digital remains overvalued after its multiyear rally, particularly because the stock’s valuation is difficult to justify while profitability remains negative. B. Riley Financial also cut its price target, adding pressure to sentiment. Has Applied Digital Become Overvalued?

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Roth Capital set a $35.00 price objective on shares of Applied Digital and gave the stock a “buy” rating in a research report on Wednesday, October 21st. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Needham & Company LLC dropped their target price on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, October 8th. Morgan Stanley set a $41.00 price target on shares of Applied Digital and gave the stock an “equal weight” rating in a research report on Friday, October 9th. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and issued a $55.00 price target (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $57.75.

Applied Digital Stock Performance

The company has a market cap of $5.39 billion, a price-to-earnings ratio of -10.88 and a beta of 5.99. 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 stock’s fifty day simple moving average is $23.84 and its 200 day simple moving average is $31.25.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. The business had revenue of $300.39 million for the quarter, compared to analyst estimates 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 revenue was up 367.8% on a year-over-year basis. During the same period last year, the company posted ($0.03) EPS. As a group, analysts anticipate that Applied Digital Corporation will post -2.17 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Wes Cummins bought 55,803 shares of the company’s stock in a transaction on Friday, October 16th. The stock was bought at an average cost of $18.04 per share, for a total transaction of $1,006,686.12. Following the acquisition, the chief executive officer directly owned 5,874,453 shares in the company, valued at $105,975,132.12. This represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, President Jason Gechen Zhang bought 300,000 shares of the business’s stock in a transaction on Friday, October 16th. The stock was bought at an average cost of $18.86 per share, with a total value of $5,658,000.00. Following the completion of the purchase, the president directly owned 2,839,227 shares in the company, valued at approximately $53,547,821.22. The trade was a 11.81% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Situational Awareness LP boosted its holdings in Applied Digital by 14.1% in the 2nd quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock valued at $574,000 after purchasing an additional 1,906,178 shares during the last quarter. Equitec Proprietary Markets LLC acquired a new stake in shares of Applied Digital during the 2nd quarter worth approximately $312,349,000. Hsbc Holdings PLC increased its holdings in shares of Applied Digital by 6.2% during the 1st quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company’s stock worth $28,377,000 after buying an additional 72,460 shares during the last quarter. Sei Investments Co. raised its position in shares of Applied Digital by 33.0% during the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after buying an additional 271,618 shares during the period. Finally, Janus Henderson Group PLC raised its position in shares of Applied Digital by 318.5% during the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock valued at $18,638,000 after buying an additional 597,548 shares during the period. 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 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.