Applied Digital (NASDAQ:APLD) Stock Price Down 3.5% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares were down 3.5% during trading on Tuesday. The stock traded as low as $21.44 and last traded at $22.44. Approximately 27,793,206 shares changed hands during trading, an increase of 22% from the average daily volume of 22,874,234 shares. The stock had previously closed at $23.25.

Applied Digital News Summary

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

• Positive Sentiment: Applied Digital reported fiscal first-quarter 2027 revenue of approximately $341.9 million, up 322% year over year, and has about $36 billion in contracted revenue. The company also plans to bring more than 600 megawatts of capacity online over the next 12 months, supporting its long-term growth story. Applied Digital Ends the Quarter With $36 Billion in Contracted Revenue as AI Moat Widens
• Positive Sentiment: Northland Securities maintained an “Outperform” rating and an $82 price target, indicating substantial potential upside if Applied Digital can execute its data-center expansion and convert contracted demand into operating cash flow. Applied Digital analyst coverage
• Neutral Sentiment: The company’s Finland expansion and planned capacity growth are attracting attention, but investors remain focused on how the buildout will be funded before tenants begin generating rent. Applied Digital Wants to Add 600 Megawatts in a Year. Can It Pay for It?
• Negative Sentiment: Despite strong revenue growth, Applied Digital posted a much wider GAAP net loss of roughly $237.1 million. Heavy debt, a debt-to-equity ratio near 3.9 and the need for significant construction spending are raising concerns about dilution, financing risk and the timing of profitability. What Could Derail Applied Digital Stock?
• Negative Sentiment: Northland sharply reduced its 2027 EPS forecasts, including lowering full-year expectations from a $0.44 loss to a $1.50 loss per share. The revisions reinforce concerns that costs and investment spending will outpace near-term earnings, contributing to the stock’s decline. Applied Digital earnings estimates

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Northland Securities set a $82.00 price objective on Applied Digital and gave the company an “outperform” rating in a report on Wednesday, June 17th. Morgan Stanley set a $41.00 target price on shares of Applied Digital and gave the company an “equal weight” rating in a report on Friday. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 26th. Needham & Company LLC lowered their price objective on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, October 8th. Finally, Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the company a “neutral” rating in a research note on Monday, September 21st. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $62.25.

Applied Digital Trading Down 3.5%

The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56. The stock has a market capitalization of $6.79 billion, a PE ratio of -13.68 and a beta of 5.99. The business’s 50-day moving average is $26.87 and its two-hundred day moving average is $32.48.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping 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 company had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the prior year, the firm earned ($0.03) EPS. Applied Digital’s quarterly revenue was up 367.8% on a year-over-year basis. As a group, equities research analysts anticipate that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Transactions at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares in the company, valued at $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently modified their holdings of APLD. GAMMA Investing LLC raised its position in Applied Digital by 42.6% in the third quarter. GAMMA Investing LLC now owns 2,983 shares of the company’s stock worth $73,000 after acquiring an additional 891 shares in the last quarter. CoreCap Advisors LLC lifted its stake in shares of Applied Digital by 246.6% in the third quarter. CoreCap Advisors LLC now owns 2,194 shares of the company’s stock valued at $53,000 after purchasing an additional 1,561 shares during the period. Valeo Financial Advisors LLC lifted its stake in shares of Applied Digital by 6.7% in the third 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. Two Seas Capital LP purchased a new stake in Applied Digital during the third quarter worth about $1,218,000. Finally, Envestnet Asset Management Inc. boosted its holdings in Applied Digital by 4.7% during the second quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock worth $497,000 after buying an additional 596 shares in the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

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.