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

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

Applied Digital Stock Up 0.3%

NASDAQ APLD opened at $20.39 on Friday. The company’s 50-day moving average price is $26.34 and its 200-day moving average price is $32.37. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56. Applied Digital Corporation has a 12 month low of $18.36 and a 12 month high of $50.72.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate 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 company had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same quarter last year, the firm posted ($0.03) EPS. The firm’s revenue was up 367.8% compared to the same quarter last year. As a group, sell-side analysts expect that Applied Digital Corporation will post -2.06 earnings per share for the current year.

Institutional Trading of Applied Digital

Institutional investors and hedge funds have recently made changes to their positions in the company. Situational Awareness LP grew its holdings in Applied Digital by 18.9% during the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock worth $319,978,000 after acquiring an additional 2,139,378 shares in the last quarter. Equitec Proprietary Markets LLC purchased a new position in Applied Digital during the 2nd quarter valued at about $312,349,000. Hsbc Holdings PLC bought a new stake in shares of Applied Digital in the 4th quarter valued at about $29,510,000. Sei Investments Co. raised its holdings in shares of Applied Digital by 33.0% in the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after purchasing an additional 271,618 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Applied Digital by 32.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company’s stock valued at $21,681,000 after purchasing an additional 143,308 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

Key Headlines Impacting Applied Digital

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

• Positive Sentiment: Applied Digital’s latest quarter showed revenue of $300.4 million, up 367.8% year over year, while its $0.01 per-share loss was substantially better than the $0.30 loss analysts expected. The results demonstrate strong demand and significant operating growth. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: Analysts continue to debate whether Applied Digital’s valuation is justified by its current sales, particularly as the company commits substantial capital to large AI data-center projects. The stock’s previous multiyear gains have increased scrutiny of its revenue outlook. Applied Digital Stock Looks Fully Priced
• Negative Sentiment: Higher bond yields and renewed concern about borrowing costs have pressured data-center developers that must spend heavily before receiving customer payments. Applied Digital’s debt-to-equity ratio is approximately 3.9, making financing conditions particularly important for shareholders. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
• Negative Sentiment: Investors are questioning whether Applied Digital can fund ongoing construction if lenders become more selective. Articles highlight cash-burn risk, expanding construction commitments and the possibility of tighter credit markets. Could Applied Digital Survive Its Lenders Pulling Back?
• Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his position by 23.4%. While insider sales do not necessarily indicate a deteriorating business outlook, the transaction adds to near-term investor caution. SEC Insider Transaction Filing
• Negative Sentiment: An analyst reduced the company’s second-quarter EPS estimate, reinforcing concerns that heavy investment and financing expenses may continue to weigh on profitability. Q2 EPS Estimate Reduced

Analyst Upgrades and Downgrades

APLD has been the subject of several research analyst reports. B. Riley Financial reaffirmed a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. Wells Fargo & Company reissued an “overweight” rating and issued a $55.00 price objective (up from $50.00) on shares of Applied Digital in a research note on Thursday, October 8th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Finally, Citigroup restated a “market outperform” rating on shares of Applied Digital in a report on Thursday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average 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.