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

Applied Digital Corporation (NASDAQ:APLD) Director Richard Nottenburg sold 31,250 shares of the firm’s 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 completion of the sale, the director directly owned 102,128 shares of the company’s stock, valued at $2,230,475.52. The trade was a 23.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Applied Digital Stock Down 11.5%

Shares of APLD stock opened at $18.05 on Friday. Applied Digital Corporation has a 1-year low of $17.65 and a 1-year high of $50.72. The stock’s fifty day moving average price is $26.11 and its 200 day moving average price is $32.27. 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 (NASDAQ:APLD) last announced its earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $300.39 million for the quarter, compared to analyst estimates of $116.29 million. During the same period in the prior year, the company posted ($0.03) EPS. The firm’s quarterly revenue was up 367.8% compared to the same quarter last year. Sell-side analysts anticipate that Applied Digital Corporation will post -2.06 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on APLD shares. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. B. Riley Financial restated 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. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $55.00 price target (up from $50.00) on shares of Applied Digital in a report on Thursday, October 8th. Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the stock a “neutral” rating in a research note on Monday, September 21st. Finally, Morgan Stanley set a $41.00 target price on Applied Digital and gave the company an “equal weight” rating in a research report on Friday, October 9th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $62.25.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently modified their holdings of the company. Whitaker Myers Wealth Managers LTD. acquired a new stake in Applied Digital during the 2nd quarter valued at approximately $1,841,000. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of Applied Digital by 39.6% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock valued at $5,469,000 after acquiring an additional 41,562 shares during the last quarter. Dimensional Fund Advisors LP purchased a new stake in shares of Applied Digital in the 1st quarter valued at $1,970,000. Situational Awareness LP boosted its holdings in shares of Applied Digital by 14.1% in the 2nd quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock valued at $574,000 after acquiring an additional 1,906,178 shares during the last quarter. Finally, TFR Capital LLC. increased its stake in shares of Applied Digital by 425.3% in the first quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock worth $9,497,000 after acquiring an additional 301,954 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

Key Stories Impacting Applied Digital

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

• Positive Sentiment: Applied Digital reported fiscal first-quarter revenue of $300.4 million, up 367.8% year over year, while its $0.01 per-share loss was significantly narrower than the $0.30 loss analysts expected. The strong growth highlights continued demand for its data-center infrastructure. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: Analysts remain broadly constructive, with Applied Digital carrying a “Moderate Buy” consensus rating and an average price target of $62.25. However, targets vary widely, reflecting uncertainty over how quickly new AI facilities will generate profitable revenue. Applied Digital Analyst Ratings
• Negative Sentiment: Higher bond yields and renewed scrutiny of financing costs are weighing on data-center developers that borrow heavily to build facilities before receiving customer payments. Applied Digital’s debt-to-equity ratio of approximately 3.9 increases its sensitivity to tighter credit conditions. Rotation Out of Debt-Funded AI Builders
• Negative Sentiment: Investors are increasingly focused on cash burn and whether lenders will continue funding Applied Digital’s expanding construction pipeline. The concern is that additional debt or less favorable financing could pressure profitability and shareholder returns. Applied Digital Funding Risks
• Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his holdings by 23.4%. Although one insider sale is not necessarily a signal of deteriorating fundamentals, it adds to near-term investor caution. SEC Insider Transaction Filing
• Negative Sentiment: An analyst lowered the company’s second-quarter EPS estimate, reinforcing concerns that construction spending, financing costs and ongoing losses may continue to weigh on earnings. Reduced Applied Digital EPS Estimate

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.