Applied Digital (NASDAQ:APLD) Stock Price Down 5.4% - What's Next?

Key Points

• Applied Digital shares fell 5.4% intraday to $30.99, with 18.28 million shares traded—about 48% below its average session volume—underscoring high volatility (beta 6.95).
• Wall Street is broadly positive (1 Strong Buy, 11 Buy, 1 Sell), but the MarketBeat average price target is $26.20, which is below the current share price.
• The company beat quarterly expectations—revenue $64.22M and EPS (‑$0.03) vs. consensus (‑$0.11)—yet remains unprofitable (negative net margin 111.29% and negative ROE), and insiders have sold roughly 328,035 shares (~$11.4M) in the past 90 days.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) fell 5.4% during mid-day trading on Wednesday . The company traded as low as $30.92 and last traded at $30.99. 18,282,285 shares traded hands during trading, a decline of 48% from the average session volume of 35,249,898 shares. The stock had previously closed at $32.77.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on APLD. Needham & Company LLC reaffirmed a "buy" rating and issued a $41.00 price target on shares of Applied Digital in a report on Wednesday, October 29th. Compass Point assumed coverage on Applied Digital in a research report on Monday, September 15th. They set a "buy" rating on the stock. HC Wainwright lifted their price objective on Applied Digital from $20.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, October 10th. B. Riley restated a "buy" rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Finally, Citigroup reiterated an "outperform" rating on shares of Applied Digital in a research report on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $26.20.

Applied Digital Stock Performance

The stock has a market capitalization of $8.63 billion, a P/E ratio of -27.42 and a beta of 6.95. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The company has a 50-day moving average price of $29.61 and a two-hundred day moving average price of $19.21.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The company had revenue of $64.22 million during the quarter, compared to analysts' expectations of $52.25 million. During the same quarter in the previous year, the company earned ($0.15) earnings per share. Applied Digital's revenue for the quarter was up 84.3% on a year-over-year basis. Equities analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 37,503 shares of Applied Digital stock in a transaction on Tuesday, October 28th. The stock was sold at an average price of $36.47, for a total transaction of $1,367,734.41. Following the completion of the sale, the chief financial officer owned 121,409 shares of the company's stock, valued at approximately $4,427,786.23. This trade represents a 23.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard N. Nottenburg sold 9,375 shares of the company's stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $35.91, for a total value of $336,656.25. Following the completion of the transaction, the director owned 249,237 shares in the company, valued at $8,950,100.67. This represents a 3.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 328,035 shares of company stock valued at $11,376,479 in the last ninety days. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently bought and sold shares of APLD. Atlantic Union Bankshares Corp bought a new stake in Applied Digital during the second quarter valued at approximately $25,000. Larson Financial Group LLC raised its position in Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after purchasing an additional 1,129 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in Applied Digital during the second quarter worth about $26,000. Dagco Inc. purchased a new position in shares of Applied Digital in the 3rd quarter worth about $27,000. Finally, PNC Financial Services Group Inc. purchased a new position in shares of Applied Digital in the 1st quarter worth about $28,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.