Applied Digital (NASDAQ:APLD) Shares Down 9.2% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD) shares were down 9.2% during trading on Wednesday . The company traded as low as $21.93 and last traded at $22.00. Approximately 28,473,966 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 35,144,281 shares. The stock had previously closed at $24.24.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Secured development financing with Macquarie to fund new AI “factory” campuses — provides committed capital to cover pre‑lease development costs, de‑risking growth and accelerating capacity buildout for hyperscaler and AI customers. Applied Digital Completes Development Loan Facility with Macquarie Group to Support New AI Factory Campuses
• Positive Sentiment: Company announced a separate fundraising (reported as ~$100M) that boosts liquidity to fund projects and reduces immediate capital risk — a primary driver of the intraday rebound. Applied Digital (APLD) Rebounds 8.6% on $100-Million Fundraising
• Positive Sentiment: Investor commentary and media coverage highlight the closed loan facility and partner traction (e.g., CoreWeave), reinforcing the narrative of 2025 share gains tied to hyperscaler/AI demand. Overlooked Stock: APLD Closes Loan Facility for New Data Centers
• Neutral Sentiment: Applied Digital scheduled its fiscal Q2 2026 earnings call for Jan 7 — investors will watch guidance, revenue traction from new campuses, and lease/pre‑lease progress for clearer near‑term outlook. Applied Digital Sets Fiscal Second Quarter 2026 Conference Call for Wednesday, January 7, 2026
• Neutral Sentiment: Analyst piece compares APLD to Dell (DELL) on AI infrastructure upside — highlights differing strategies (APLD = niche hyperscaler/colocation + build‑to‑suit vs. Dell = integrated hardware/software stack); useful context for longer‑term relative positioning but not an immediate catalyst. APLD vs. DELL: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Some investment firms expressed growing concerns about the sustainability of AI demand and valuations, which triggered a pullback before today’s rebound — a reminder that sentiment and valuation risk can produce sharp swings in APLD’s high‑beta stock. Applied Digital (APLD) Falls 9% on Investment Firms’ Growing AI Concerns

Analysts Set New Price Targets

Several equities research analysts recently issued reports on APLD shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a report on Wednesday, October 8th. B. Riley reiterated a “buy” rating on shares of Applied Digital in a research report on Wednesday, October 22nd. Craig Hallum increased their price objective on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Needham & Company LLC restated a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a research report on Wednesday, October 29th. Finally, Wall Street Zen downgraded shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Sunday, October 19th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $26.20.

Applied Digital Stock Up 16.5%

The business’s 50 day simple moving average is $29.34 and its 200 day simple moving average is $20.08. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $7.78 billion, a PE ratio of -24.65 and a beta of 6.94.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $64.22 million for the quarter, compared to the consensus estimate of $52.25 million. During the same quarter in the prior year, the firm posted ($0.15) earnings per share. The business’s revenue for the quarter was up 84.3% on a year-over-year basis. On average, equities research analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 34,375 shares of the firm’s stock in a transaction on Friday, October 24th. The stock was sold at an average price of $33.23, for a total value of $1,142,281.25. Following the completion of the sale, the director owned 263,612 shares of the company’s stock, valued at $8,759,826.76. This trade represents a 11.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ella G. Benson sold 42,569 shares of Applied Digital stock in a transaction dated Wednesday, October 29th. The stock was sold at an average price of $35.30, for a total value of $1,502,685.70. Following the sale, the director directly owned 69,256 shares of the company’s stock, valued at $2,444,736.80. This trade represents a 38.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 328,035 shares of company stock valued at $11,376,479. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Large investors have recently bought and sold shares of the business. Cetera Investment Advisers grew its stake in Applied Digital by 146.0% in the 1st quarter. Cetera Investment Advisers now owns 38,296 shares of the company’s stock valued at $215,000 after acquiring an additional 22,730 shares during the period. LPL Financial LLC lifted its position in shares of Applied Digital by 65.7% in the first quarter. LPL Financial LLC now owns 299,779 shares of the company’s stock valued at $1,685,000 after acquiring an additional 118,877 shares in the last quarter. PNC Financial Services Group Inc. acquired a new position in Applied Digital during the first quarter worth about $28,000. Vanguard Group Inc. lifted its position in Applied Digital by 5.7% during the first quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company’s stock worth $75,819,000 after buying an additional 730,978 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of Applied Digital by 3.9% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,869,386 shares of the company’s stock valued at $10,506,000 after acquiring an additional 70,955 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.