Applied Digital (NASDAQ:APLD) Stock Price Down 2% on Insider Selling

Key Points

• Insider selling by directors coincided with a roughly 2% intraday decline in APLD; Director Richard Nottenburg sold 12,500 shares on April 30 and 12,500 on April 28, and Director Douglas Miller sold 10,000 shares on April 27, while the stock traded as low as $33.29 and last at $33.55.
• Analyst coverage is mixed but leans positive, with a MarketBeat consensus of "Moderate Buy" and a $44.33 target, although some firms have issued sell ratings amid valuation concerns.
• Applied Digital reported revenue of $108.6M for the quarter (up ~139% YoY), beating estimates, but missed on EPS (‑$0.36) and remains unprofitable with a negative net margin (~52.8%).

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 2% during mid-day trading on Friday following insider selling activity. The company traded as low as $33.29 and last traded at $33.55. Approximately 16,946,256 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 26,746,668 shares. The stock had previously closed at $34.25.

Specifically, 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 transaction, the director owned 208,378 shares of the company's stock, valued at $7,207,795.02. This represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $32.00, for a total value of $400,000.00. Following the sale, the director directly owned 220,878 shares in the company, valued at $7,068,096. The trade was a 5.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other news, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, the director directly owned 184,859 shares in the company, valued at approximately $6,466,367.82. The trade was a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Wall Street Analyst Weigh In

APLD has been the subject of a number of research reports. Arete Research began coverage on shares of Applied Digital in a report on Wednesday, January 7th. They issued a "buy" rating for the company. Freedom Capital upgraded shares of Applied Digital to a "strong-buy" rating in a research report on Tuesday, January 6th. Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Northland Securities set a $56.00 price target on shares of Applied Digital in a report on Wednesday, January 28th. Finally, Citigroup reissued an "outperform" rating on shares of Applied Digital in a research note on Wednesday, January 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $44.33.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Large hyperscaler lease — Applied Digital announced a 15‑year lease for 300 MW of IT load at its Delta Forge 1 AI Factory, locking in long‑term revenue and capacity utilization that materially boosts backlog and visibility into future cash flows. Why Applied Digital Is Scaling Its AI Factory Backlog
• Positive Sentiment: Strong share rally and institutional buying — APLD has rallied sharply recently (roughly +44% over one month), attracting analyst and hedge‑fund attention; several funds raised positions in Q1, which supports demand and liquidity for the stock. Assessing Applied Digital Valuation After Rally
• Neutral Sentiment: Mixed analyst coverage — Street ratings skew positive (multiple Buy/Strong Buy notes and a consensus target around $44), but sentiment is not unanimous and some models still price in negative near‑term earnings, leaving valuation debates unresolved. MarketBeat Coverage and Analyst Snapshot
• Negative Sentiment: High‑profile bearish comment — CNBC/Mad Money host Jim Cramer publicly told callers to “say no” on APLD, citing the company’s current lack of profitability; that kind of televised skepticism can pressure sentiment and trigger short‑term selling. Jim Cramer Says “I’m Going to Say No to Applied Digital”
• Negative Sentiment: Insider selling by a director — Director Richard Nottenburg sold 12,500 shares in late April (transactions reported ~ $32–$34/share); while small relative to his remaining holdings, insider sales can be interpreted negatively by momentum traders. Applied Digital Insider Selling Report

Applied Digital Price Performance

The firm has a market cap of $9.59 billion, a price-to-earnings ratio of -45.34 and a beta of 7.25. The business's 50-day simple moving average is $28.28 and its two-hundred day simple moving average is $30.08. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) 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 firm had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. During the same quarter last year, the firm posted ($0.08) EPS. The firm's revenue for the quarter was up 139.3% on a year-over-year basis. As a group, research analysts expect that Applied Digital Corporation will post -0.52 EPS for the current fiscal year.

Institutional Trading of Applied Digital

A number of large investors have recently bought and sold shares of APLD. Vanguard Group Inc. lifted its stake in shares of Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after purchasing an additional 6,445,908 shares during the period. Value Aligned Research Advisors LLC bought a new stake in Applied Digital in the fourth quarter worth approximately $138,380,000. Situational Awareness LP lifted its stake in Applied Digital by 87.0% in the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock valued at $278,034,000 after buying an additional 5,274,905 shares during the period. BNP Paribas Financial Markets lifted its stake in Applied Digital by 24,356.8% in 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 period. Finally, Marex Group plc boosted its holdings in shares of Applied Digital by 38,484.6% during the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company's stock worth $95,745,000 after buying an additional 3,894,639 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.

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