Applied Digital (NASDAQ:APLD) Shares Up 9.4% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) shares rose 9.4% during trading on Tuesday. The company traded as high as $19.77 and last traded at $19.51. Approximately 20,202,559 shares traded hands during trading, a decline of 13% from the average daily volume of 23,119,492 shares. The stock had previously closed at $17.83.

More Applied Digital News

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

• Positive Sentiment: Applied Digital signed a definitive agreement with Soluna Holdings to develop a jointly owned 50-megawatt critical IT data center in Texas. The project is aimed at serving demand for artificial intelligence and high-performance computing, potentially expanding Applied Digital’s long-term capacity and customer opportunities. Applied Digital Shares Climbed, What Is Behind The Latest Attention?
• Positive Sentiment: Company insiders, including top executives, reportedly purchased Applied Digital shares following a steep selloff. Investors may view the buying as a signal that management believes the stock’s decline has created attractive long-term value. Applied Digital Insiders Just Bought More Shares
• Positive Sentiment: Applied Digital benefited from a broader recovery in AI and data-center stocks as investors pushed back against concerns about slowing AI-compute demand. Similar gains across operators such as Riot Platforms and Core Scientific reinforced the sector-wide momentum. Applied Digital Jumps as Data Center Stocks Rebound
• Neutral Sentiment: Recent coverage highlights Applied Digital’s long-term AI contracts and relatively lower overhead compared with some neocloud competitors. Broader evidence of strong AI-compute demand, including developments involving SpaceX, supports the company’s industry outlook, though it does not guarantee additional contracts.
• Negative Sentiment: The rally follows a substantial selloff: the stock recently reached a fresh 52-week low, while its 30-day and year-to-date performance remained negative. Analysts and investors continue to watch the company’s heavy debt load and construction deadlines, which could pressure returns if projects are delayed or require additional capital. Applied Digital Reaches a 52-Week Low

Analysts Set New Price Targets

APLD has been the subject of a number of research reports. Roth Capital set a $35.00 price target on Applied Digital and gave the company a “buy” rating in a research note on Wednesday, October 21st. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Needham & Company LLC dropped their price objective on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday, October 8th. Morgan Stanley set a $41.00 price objective on Applied Digital and gave the company an “equal weight” rating in a report on Friday, October 9th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Monday, October 19th. Three equities research 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 assigned a Sell rating to the company. According to data from MarketBeat, Applied Digital has an average rating of “Moderate Buy” and an average target price of $59.75.

Applied Digital Price Performance

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 company’s 50 day moving average price is $24.45 and its 200-day moving average price is $31.54. The company has a market cap of $6.17 billion, a price-to-earnings ratio of -12.43 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.30) by $0.29. The business had revenue of $300.39 million during the quarter, compared to analyst estimates of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The business’s quarterly revenue was up 367.8% on a year-over-year basis. During the same period in the prior year, the business earned ($0.03) earnings per share. On average, equities research analysts forecast that Applied Digital Corporation will post -2.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, President Jason Gechen Zhang purchased 300,000 shares of Applied Digital stock in a transaction dated Friday, October 16th. The stock was acquired at an average cost of $18.86 per share, for a total transaction of $5,658,000.00. Following the acquisition, the president directly owned 2,839,227 shares in the company, valued at $53,547,821.22. This represents a 11.81% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Richard N. Nottenburg sold 75,000 shares of the business’s stock in a transaction that occurred on 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 directly owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. bought a new position in Applied Digital during the third quarter valued at about $3,666,000. Americana Partners LLC lifted its position in shares of Applied Digital by 15.4% in the 3rd quarter. Americana Partners LLC now owns 11,266 shares of the company’s stock worth $275,000 after acquiring an additional 1,500 shares during the period. State of Wyoming lifted its position in shares of Applied Digital by 210.4% in the 3rd quarter. State of Wyoming now owns 6,230 shares of the company’s stock worth $152,000 after acquiring an additional 4,223 shares during the period. Blueprint Investment Partners LLC acquired a new stake in shares of Applied Digital during the 3rd quarter worth approximately $246,000. Finally, Blueprint Financial Advisors LLC acquired a new stake in shares of Applied Digital during the 3rd quarter worth approximately $246,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

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

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.