Applied Digital (NASDAQ:APLD) Stock Falls 11.5% After Insider Selling

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 11.5% during trading on Friday after an insider sold shares in the company. The company traded as low as $17.65 and last traded at $18.05. Approximately 34,568,160 shares were traded during mid-day trading, an increase of 50% from the average daily volume of 23,036,219 shares. The stock had previously closed at $20.39.

Specifically, Director Richard Nottenburg sold 31,250 shares of the stock in a transaction that occurred 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 owned 102,128 shares of the company’s stock, valued at approximately $2,230,475.52. This trade represents a 23.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analysts Set New Price Targets

A number of research firms have weighed in on APLD. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the stock a “neutral” rating in a research note on Monday, September 21st. UBS Group reaffirmed a “buy” rating on shares of Applied Digital in a research note on Thursday, October 8th. B. Riley Financial reiterated a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Needham & Company LLC reduced their price target on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a report on Thursday, October 8th. Finally, Citigroup restated a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Applied Digital presently has an average rating of “Moderate Buy” and a consensus price target of $62.25.

Key Applied Digital News

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 substantially narrower than the $0.30 loss analysts expected. The results highlight strong demand for its data-center infrastructure. Applied Digital Fiscal Q1 2027 Revenue Surges
• Neutral Sentiment: Analyst opinion remains broadly favorable, with a consensus “Moderate Buy” rating, although price targets and estimates vary widely. Needham lowered its target while Wells Fargo raised its target, underscoring disagreement over how much future AI growth is already reflected in the stock. Applied Digital Analyst Ratings
• Negative Sentiment: Higher bond yields and renewed scrutiny of borrowing costs are weighing on data-center companies that must finance construction before receiving customer payments. Applied Digital’s debt-to-equity ratio of approximately 3.9 increases its sensitivity to tighter credit markets. Data Center Stocks Tumble as Financing Costs Draw Scrutiny
• Negative Sentiment: Investors are questioning whether Applied Digital can fund its expanding AI data-center buildout if lenders become more selective. Cash-burn risk and substantial construction spending could delay profitability or require additional financing. Could Applied Digital Survive Its Lenders Pulling Back?
• Negative Sentiment: Director Richard Nottenburg sold 31,250 shares for approximately $682,500, reducing his holdings by 23.4%. Although the sale does not prove a weaker business outlook, 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 investment and financing expenses may continue to pressure earnings. Q2 EPS Estimate Reduced

Applied Digital Stock Performance

The firm has a 50 day simple moving average of $26.34 and a 200-day simple moving average of $32.37. The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56. The company has a market cap of $5.46 billion, a price-to-earnings ratio of -11.01 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. The company had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The company’s revenue for the quarter was up 367.8% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.03) earnings per share. As a group, analysts predict that Applied Digital Corporation will post -2.06 EPS for the current fiscal year.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. Situational Awareness LP lifted its position in Applied Digital by 18.9% in the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock valued at $319,978,000 after buying an additional 2,139,378 shares during the last quarter. Equitec Proprietary Markets LLC acquired a new stake in shares of Applied Digital during the second quarter valued at about $312,349,000. Hsbc Holdings PLC purchased a new stake in shares of Applied Digital in the 4th quarter valued at approximately $29,510,000. Sei Investments Co. raised its stake in shares of Applied Digital by 33.0% in the 1st quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after acquiring an additional 271,618 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Applied Digital by 32.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 581,255 shares of the company’s stock valued at $21,681,000 after acquiring an additional 143,308 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

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.