Applied Digital (NASDAQ:APLD) Hits New 52-Week Low – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD) shares hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $18.70 and last traded at $18.6320, with a volume of 6,138,776 shares changing hands. The stock had previously closed at $20.33.

Key Headlines Impacting Applied Digital

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

• Positive Sentiment: Applied Digital’s fiscal Q1 2027 revenue surged, highlighting strong demand for its data-center capacity and supporting the company’s long-term growth opportunity. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: The company’s opportunity extends beyond its reported revenue growth, but rent remains a relatively small portion of total revenue, leaving investors focused on how quickly new capacity can become profitable. Applied Digital Faces a Bigger Opportunity Than Revenue Growth
• Negative Sentiment: Financing costs are drawing renewed scrutiny across AI data-center developers. Applied Digital borrows heavily to build facilities before receiving rental income, so higher bond yields and more expensive capital could pressure cash flow, future expansion and valuation. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
• Negative Sentiment: Investors are questioning whether lenders will continue funding the company’s construction pipeline amid a challenging bond market. Concerns intensified after management reported a wider loss while investing in new facilities. Could Applied Digital Survive Its Lenders Pulling Back?
• Negative Sentiment: An analyst reduced the company’s fiscal Q2 earnings estimate, adding to concerns about near-term profitability. Applied Digital’s shares also reached a fresh one-year low, reflecting deteriorating investor sentiment. Q2 EPS Estimate for Applied Digital Reduced
• Negative Sentiment: A broader selloff in AI stocks, fueled by higher inflation and rising Treasury yields, has further pressured companies dependent on debt financing, including Applied Digital. Stocks Fall as Inflation Pushes Bond Yields Higher

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on APLD. Northland Securities set a $82.00 price objective on Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Morgan Stanley set a $41.00 target price on shares of Applied Digital and gave the company an “equal weight” rating in a research note on Friday, October 9th. Zacks Research lowered shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Finally, Needham & Company LLC cut their price target on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $62.25.

Applied Digital Price Performance

The company has a market capitalization of $5.85 billion, a PE ratio of -11.65 and a beta of 5.99. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 3.90. The firm’s 50-day moving average is $26.51 and its 200-day moving average is $32.40.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The business 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 business posted ($0.03) earnings per share. The company’s revenue for the quarter was up 367.8% on a year-over-year basis. Equities analysts predict that Applied Digital Corporation will post -1.93 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard Nottenburg sold 75,000 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Large investors have recently modified their holdings of the company. Krilogy Financial LLC boosted its stake in Applied Digital by 49.0% in the third quarter. Krilogy Financial LLC now owns 21,228 shares of the company’s stock worth $494,000 after buying an additional 6,985 shares in the last quarter. Thor Investment Management Inc. OH ADV grew its position in Applied Digital by 1.1% during the third quarter. Thor Investment Management Inc. OH ADV now owns 282,257 shares of the company’s stock valued at $6,879,000 after acquiring an additional 2,986 shares during the last quarter. GAMMA Investing LLC grew its position in Applied Digital by 42.6% during the third quarter. GAMMA Investing LLC now owns 2,983 shares of the company’s stock valued at $73,000 after acquiring an additional 891 shares during the last quarter. CoreCap Advisors LLC grew its position in Applied Digital by 246.6% during the third quarter. CoreCap Advisors LLC now owns 2,194 shares of the company’s stock valued at $53,000 after acquiring an additional 1,561 shares during the last quarter. Finally, Valeo Financial Advisors LLC raised its stake in shares of Applied Digital by 6.7% during the third quarter. Valeo Financial Advisors LLC now owns 12,343 shares of the company’s stock worth $301,000 after acquiring an additional 773 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.