Applied Digital (NASDAQ:APLD) Director Sells 31,250 Shares of Company Stock

Key Points

• Director Richard Nottenburg sold 31,250 Applied Digital shares at an average price of $21.84, generating $682,500 and reducing his direct ownership by 23.43% to 102,128 shares.
• Applied Digital reported fiscal-quarter revenue of $300.39 million, up 367.8% year over year, and an adjusted loss of $0.01 per share that beat estimates; however, the company remains unprofitable with a negative net margin.
• Shares have faced pressure amid concerns about high debt, cash burn and rising financing costs, despite a consensus “Moderate Buy” rating and $62.25 analyst price target.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) Director Richard Nottenburg sold 31,250 shares of the business's stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $21.84, for a total value of $682,500.00. Following the transaction, the director directly owned 102,128 shares of the company's stock, valued at approximately $2,230,475.52. This represents a 23.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Applied Digital Stock Performance

Shares of Applied Digital stock traded up $0.06 on Thursday, hitting $20.39. The stock had a trading volume of 35,173,680 shares, compared to its average volume of 22,978,025. Applied Digital Corporation has a 52-week low of $18.36 and a 52-week high of $50.72. 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 has a market cap of $6.17 billion, a price-to-earnings ratio of -12.43 and a beta of 5.99. The company's 50 day moving average price is $26.51 and its 200 day moving average price is $32.40.

Applied Digital (NASDAQ:APLD - Get Free Report) last announced its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating analysts' consensus estimates of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The firm had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same quarter last year, the firm earned ($0.03) earnings per share. The firm's revenue was up 367.8% compared to the same quarter last year. On average, research analysts anticipate that Applied Digital Corporation will post -1.93 EPS for the current year.

Key Applied Digital News

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

• Positive Sentiment: Applied Digital’s fiscal first-quarter revenue surged year over year, and its reported loss was substantially better than analyst expectations. The growth highlights strong demand for its data-center capacity, although the company remains unprofitable. Applied Digital fiscal Q1 2027 revenue article
• Neutral Sentiment: An analysis argues that APLD’s valuation is largely supported by expected future sales rather than current profitability. Investors are weighing the company’s substantial long-term opportunity against heavy capital requirements for new AI facilities. Applied Digital stock valuation article
• Negative Sentiment: Higher bond yields and increased scrutiny of debt financing have hit data-center developers broadly. Because Applied Digital borrows heavily to build facilities before receiving contracted rent, rising financing costs could reduce project returns and make additional funding more difficult. Data center stocks financing costs article
• Negative Sentiment: Analysts and investors are increasingly focused on cash burn, construction spending and the company’s ability to fund expansion if lenders become less willing to provide capital. Applied Digital’s high debt load makes it particularly sensitive to tighter credit markets. Applied Digital cash burn and bond market article
• Negative Sentiment: An analyst lowered the company’s second-quarter EPS estimate, reinforcing concerns that near-term earnings will remain under pressure while Applied Digital invests in new capacity. Applied Digital EPS estimate article
• Negative Sentiment: The shares recently reached a one-year low, reflecting deteriorating technical momentum and investor concern that growth is not yet translating into sustainable profits. Applied Digital one-year low article

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Krilogy Financial LLC grew its position in shares of Applied Digital by 49.0% during the 3rd quarter. Krilogy Financial LLC now owns 21,228 shares of the company's stock valued at $494,000 after acquiring an additional 6,985 shares during the period. Thor Investment Management Inc. OH ADV grew its stake in Applied Digital by 1.1% in the 3rd quarter. Thor Investment Management Inc. OH ADV now owns 282,257 shares of the company's stock worth $6,879,000 after buying an additional 2,986 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Applied Digital by 42.6% during the 3rd quarter. GAMMA Investing LLC now owns 2,983 shares of the company's stock valued at $73,000 after buying an additional 891 shares in the last quarter. CoreCap Advisors LLC grew its position in Applied Digital by 246.6% during the 3rd quarter. CoreCap Advisors LLC now owns 2,194 shares of the company's stock worth $53,000 after acquiring an additional 1,561 shares during the last quarter. Finally, Valeo Financial Advisors LLC increased its holdings in Applied Digital by 6.7% during the 3rd quarter. Valeo Financial Advisors LLC now owns 12,343 shares of the company's stock valued at $301,000 after purchasing an additional 773 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on APLD shares. Zacks Research downgraded shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the stock a "neutral" rating in a research note on Monday, September 21st. UBS Group restated a "buy" rating on shares of Applied Digital in a report on Thursday, October 8th. Needham & Company LLC reduced their price objective on Applied Digital from $83.00 to $70.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Finally, Morgan Stanley set a $41.00 target price on shares of Applied Digital and gave the stock an "equal weight" rating in a research report on Friday, October 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $62.25.

About Applied Digital

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company's business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.

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