Applied Digital (NASDAQ:APLD) Trading Down 2.8% – Time to Sell?

Shares of Applied Digital Corporation (NASDAQ:APLD) fell 2.8% during mid-day trading on Tuesday . The stock traded as low as $24.07 and last traded at $24.12. 25,380,246 shares were traded during mid-day trading, a decline of 27% from the average session volume of 34,723,285 shares. The stock had previously closed at $24.81.

Applied Digital News Summary

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

• Positive Sentiment: Applied Digital announced a proposed spin?out of its cloud business and a non?binding term sheet with Ekso Bionics to form ChronoScale, a focused AI/GPU cloud platform — a strategic move that could unlock value for the core data?center business and create a pure?play AI cloud vehicle. Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale
• Positive Sentiment: Market coverage picked up on the spin?out, noting upward price action and “spin?off buzz” that contributed to short?term buying. Applied Digital Stock Moves Higher on Spin-Off Buzz
• Positive Sentiment: Coverage emphasizing the AI/cloud angle — ChronoScale as an accelerated compute platform for GPU?heavy AI workloads — supports a positive narrative around secular demand for AI infrastructure. Applied Digital Stock Rises on AI Cloud Spinoff Plan and ChronoScale Launch
• Positive Sentiment: Northland Securities reaffirmed an “outperform” rating and set a $40 price target, signaling analyst confidence and a sizable upside vs. the recent trading level. Benzinga – Northland Securities Outperform Reaffirmed
• Positive Sentiment: Lake Street Capital also reaffirmed a “buy” rating with a $45 price target, further supporting the bullish analyst narrative. Benzinga – Lake Street Capital Buy Reaffirmed
• Neutral Sentiment: Coverage that the Ekso/Applied Digital combination is in early stages (exclusive, non?binding term sheet) — important detail: the transaction is proposed and contingent on definitive agreements and approvals, so outcomes and timing are uncertain. Ekso Bionics Plans AI-Focused Merger With Applied Digital
• Negative Sentiment: Analysis explaining why APLD fell on Friday highlights recent volatility and potential short?term selling pressure ahead of this new deal news — a reminder the stock can swing sharply on headlines. Why Applied Digital Stock Fell On Friday?

Analyst Ratings Changes

Several research analysts have recently weighed in on APLD shares. Compass Point began coverage on Applied Digital in a research note on Monday, September 15th. They issued a “buy” rating for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a report on Wednesday, October 8th. Lake Street Capital restated a “buy” rating and set a $45.00 target price on shares of Applied Digital in a research note on Tuesday. Northland Securities reaffirmed an “outperform” rating and set a $40.00 price target on shares of Applied Digital in a report on Tuesday. Finally, HC Wainwright lifted their price target on shares of Applied Digital from $20.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $27.00.

Applied Digital Price Performance

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 stock has a market cap of $6.74 billion, a P/E ratio of -21.35 and a beta of 6.95. The firm has a 50 day moving average price of $28.15 and a 200 day moving average price of $20.74.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The company had revenue of $64.22 million during the quarter, compared to the consensus estimate of $52.25 million. During the same period in the previous year, the company posted ($0.15) EPS. The firm’s revenue was up 84.3% on a year-over-year basis. On average, analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity

In related news, Director Chuck Hastings sold 25,000 shares of Applied Digital stock in a transaction on Friday, October 31st. The shares were sold at an average price of $34.27, for a total transaction of $856,750.00. Following the transaction, the director owned 426,612 shares in the company, valued at approximately $14,619,993.24. The trade was a 5.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ella G. Benson sold 42,569 shares of the stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $35.30, for a total value of $1,502,685.70. Following the completion of the sale, the director owned 69,256 shares of the company’s stock, valued at $2,444,736.80. The trade was a 38.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 328,035 shares of company stock worth $11,376,479. 9.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Invesco Ltd. boosted its stake in Applied Digital by 76.1% in the 1st quarter. Invesco Ltd. now owns 192,789 shares of the company’s stock worth $1,083,000 after purchasing an additional 83,333 shares during the period. Wellington Management Group LLP boosted its position in shares of Applied Digital by 11.7% during the first quarter. Wellington Management Group LLP now owns 19,056 shares of the company’s stock worth $107,000 after acquiring an additional 2,001 shares during the last quarter. Corebridge Financial Inc. boosted its position in shares of Applied Digital by 2.0% during the first quarter. Corebridge Financial Inc. now owns 97,224 shares of the company’s stock worth $546,000 after acquiring an additional 1,899 shares during the last quarter. AQR Capital Management LLC grew 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 valued at $106,000 after acquiring an additional 8,692 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Applied Digital by 27.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,146,400 shares of the company’s stock valued at $12,063,000 after acquiring an additional 462,527 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.