Applied Digital (NASDAQ:APLD) Shares Down 2.1% - Should You Sell?

Key Points

• Applied Digital shares fell about 2.1% intraday to roughly $30.81 on Wednesday; Wall Street sentiment is a "Moderate Buy" with an average price target of $42.78 and a few bulls projecting up to ~$99.
• The company reported Q1 EPS of ($0.36), missing the ($0.13) estimate, but revenue beat at $108.6M (up 139% YoY); despite top-line growth the firm remains unprofitable with negative net margin and ROE and FY EPS is forecastly negative.
• Key risks include elevated insider selling (222,987 shares sold recently), high customer concentration, and timing/lease and power availability concerns versus peers, any of which could pressure the stock’s valuation.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) dropped 2.1% during mid-day trading on Wednesday . The stock traded as low as $29.66 and last traded at $30.81. Approximately 24,113,307 shares were traded during mid-day trading, a decline of 11% from the average daily volume of 27,174,109 shares. The stock had previously closed at $31.47.

Key Headlines Impacting Applied Digital

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

• Positive Sentiment: Sector rally lifted shares after a landmark Bloom Energy–Oracle deal rekindled buying in AI infrastructure plays; that broad momentum was cited as the reason APLD jumped in the prior session, helping short-term sentiment. Why Applied Digital (APLD) Stock Is Up Today
• Positive Sentiment: Some analysts remain very bullish — Street targets as high as ~$99 imply >200% upside for APLD as demand for AI compute and GPU-as-a-service ramps, supporting a constructive longer-term thesis. Analysts Are Still Betting That Applied Digital Stock Can More Than Double Over the Next 12 Months
• Positive Sentiment: Macro tailwind from surging GPU prices and supply constraints should boost GPU-as-a-service providers’ revenue/earnings outlook — a thematic bullish argument for APLD. GPU Prices Are Surging—3 Ways to Play the AI Chip Shortage (APLD)
• Neutral Sentiment: Analysts and investors are parsing the company’s recent Q1 earnings call — a summary of the top 5 analyst questions highlights investor focus on leasing timelines, power availability and customer contracts but does not add new hard data. The top 5 analyst questions from Applied Digital’s Q1 earnings call
• Negative Sentiment: Peer comparison: IREN is viewed as having stronger contracts, better funding and a lower valuation, and analysts flagged timing risks at APLD tied to leases and power availability — a competitive/operational concern that can pressure APLD’s multiple. IREN vs. Applied Digital: Which AI Data Center Stock Has an Edge?
• Negative Sentiment: Customer concentration remains high — dependence on a small set of large clients reduces revenue visibility and raises downside risk if any major customer cuts demand. APLD's Customer Concentration Remains Elevated: Is Growth at Risk?
• Negative Sentiment: Mixed/near-term estimate revisions: HC Wainwright cut FY2026/Q4‑2026 estimates but raised FY2027 to a positive EPS, while Northland also trimmed FY2026 — these model shifts create uncertainty on the path to profitability and can pressure near-term sentiment. HC Wainwright and Northland research notes

Wall Street Analysts Forecast Growth

A number of brokerages have commented on APLD. B. Riley Financial increased their target price on Applied Digital to $53.00 and gave the company a "buy" rating in a report on Friday, January 9th. Citizens Jmp reiterated a "market outperform" rating and set a $40.00 price target on shares of Applied Digital in a research report on Thursday, April 9th. Freedom Capital raised Applied Digital to a "strong-buy" rating in a research note on Tuesday, January 6th. Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Wednesday, January 28th. Finally, Wall Street Zen lowered shares of Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $42.78.

Applied Digital Stock Down 2.1%

The firm has a market capitalization of $8.80 billion, a PE ratio of -41.63 and a beta of 7.25. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The business has a 50-day moving average price of $28.63 and a 200-day moving average price of $29.64.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same period last year, the firm posted ($0.08) EPS. The business's quarterly revenue was up 139.3% on a year-over-year basis. Equities research analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In related news, CEO Wes Cummins sold 165,000 shares of the company's stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the completion of the sale, the chief executive officer owned 4,176,329 shares of the company's stock, valued at approximately $152,101,902.18. This represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Chuck Hastings sold 45,987 shares of Applied Digital stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the transaction, the director directly owned 388,372 shares in the company, valued at $14,979,508.04. This trade represents a 10.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 222,987 shares of company stock valued at $8,208,419. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in APLD. AQR Capital Management LLC increased its stake in Applied Digital by 84.8% during the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after acquiring an additional 8,692 shares during the last quarter. NewEdge Advisors LLC increased its position in shares of Applied Digital by 239.1% during the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock worth $187,000 after purchasing an additional 23,457 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after buying an additional 3,542 shares during the period. Strs Ohio purchased a new stake in Applied Digital in the 1st quarter valued at about $71,000. Finally, Cetera Investment Advisers lifted its position in Applied Digital by 61.0% in the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after buying an additional 23,360 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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