Applied Digital (NASDAQ:APLD) Sets New 12-Month High - Time to Buy?

Key Points

• Applied Digital hit a new 52-week high, trading as high as $42.87 and last at $43.25 on heavy volume (~16.9M shares) after a prior close of $39.88.
• Recent catalysts fueling the move include the separation of its cloud business into ChronoScale, a $300M capital raise to accelerate AI data‑center expansion, and a 15‑year $7.5B lease that pushes contracted revenue above $23B.
• Risks remain: the company posts negative earnings (quarterly EPS -$0.36), has high leverage (debt/equity ~1.65) and beta (~5.69), faces execution/cash‑flow risk on large campus builds, and has seen recent insider stock sales.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The stock traded as high as $42.87 and last traded at $43.2510, with a volume of 16919474 shares changing hands. The stock had previously closed at $39.88.

Applied Digital News Roundup

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

• Positive Sentiment: Applied Digital completed the separation of its cloud business into ChronoScale, creating two pure‑play public companies and allowing Applied Digital to concentrate on AI data‑center hosting. This corporate simplification is being viewed favorably by investors. Applied Digital Completes Separation of Cloud Business
• Positive Sentiment: Applied Digital raised $300M to accelerate its data‑center expansion, improving near‑term funding flexibility to build capacity for AI workloads — a direct catalyst for investor enthusiasm. Applied Digital (APLD) Raises $300M for Expansion, Climbs 6.2%
• Positive Sentiment: Applied Digital signed a 15‑year lease worth $7.5B with an investment‑grade hyperscaler at its Delta Forge 1 campus, lifting total contracted lease revenue above $23B and materially increasing long‑term revenue visibility. That large, long‑dated contract reduces demand risk for new capacity. Applied Digital’s Multi Billion AI Lease Deepens Revenue Visibility And Risks
• Positive Sentiment: ChronoScale (the spun‑off company) announced a new CEO, Cenly Chen, signaling governance and operating steps to scale its AI compute business — a development that supports the legitimacy of the separation and may improve investor confidence in both companies. ChronoScale Appoints Cenly Chen as Chief Executive Officer
• Neutral Sentiment: Applied Digital will retain a large ownership stake (~97%) in ChronoScale and invested $15.75M at closing — this preserves economic exposure to the cloud business but means the full value realization from the spin‑off may take time. Applied Digital Completes Separation of Cloud Business, Establishing ChronoScale as Independent Public Company
• Negative Sentiment: Risks remain: APLD has negative earnings, a high beta and leverage (debt/equity ~1.65), and execution risk in delivering large campus builds and converting leased capacity into cash flow. These fundamentals temper the upbeat reaction and represent downside if projects or tenant rollouts slip.

Analyst Ratings Changes

Several equities analysts have recently weighed in on APLD shares. Northland Securities set a $56.00 price target on Applied Digital in a report on Wednesday, January 28th. Citizens Jmp restated a "market outperform" rating and set a $40.00 price target on shares of Applied Digital in a report on Thursday, April 9th. Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Arete Research started coverage on Applied Digital in a report on Wednesday, January 7th. They set a "buy" rating for the company. Finally, B. Riley Financial increased their price objective on Applied Digital to $53.00 and gave the company a "buy" rating in a research report on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $44.33.

Applied Digital Price Performance

The firm has a 50-day moving average of $28.49 and a 200 day moving average of $30.03. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The company has a market capitalization of $12.60 billion, a PE ratio of -59.57 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The firm had revenue of $108.55 million during the quarter, compared to analysts' expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company's revenue for the quarter was up 139.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.08) earnings per share. As a group, research analysts anticipate that Applied Digital Corporation will post -0.52 earnings per share for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the company's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director owned 208,378 shares in the company, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the company's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director owned 184,859 shares of the company's stock, valued at approximately $6,466,367.82. The trade was a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock worth $1,182,175 over the last three months. Insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock worth $592,601,000 after acquiring an additional 6,445,908 shares during the period. Situational Awareness LP grew its position in shares of Applied Digital by 87.0% during the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock worth $278,034,000 after purchasing an additional 5,274,905 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Applied Digital by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after buying an additional 304,228 shares during the last quarter. Value Aligned Research Advisors LLC bought a new stake in shares of Applied Digital during the fourth quarter valued at approximately $138,380,000. Finally, BNP Paribas Financial Markets raised its position in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after buying an additional 5,198,223 shares during the last quarter. 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.

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