Applied Digital (NASDAQ:APLD) Trading 10.4% Higher on Better-Than-Expected Earnings

Applied Digital Corporation (NASDAQ:APLD) shares traded up 10.4% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $29.39 and last traded at $27.79. 36,280,516 shares traded hands during trading, an increase of 35% from the average session volume of 26,936,670 shares. The stock had previously closed at $25.18.

The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.22. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The firm had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million.

Key Applied Digital News

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

• Positive Sentiment: Q3 beat: Applied Digital reported $0.09 EPS vs. consensus -$0.13 and revenue of $108.6M vs. ~$78.5M, a clear surprise that underpins the stock rally. Press Release
• Positive Sentiment: Demand tailwinds: Reuters notes the revenue beat was driven by steady enterprise demand for data-center colocation and services supporting generative AI workloads, signaling durable top-line momentum. Applied Digital beats quarterly revenue estimates
• Neutral Sentiment: Operational update & results filing: GlobeNewswire release summarizes the quarter and operational progress on the company’s AI-focused campuses and capacity buildouts—useful for tracking execution and future revenue ramps. Applied Digital Reports Fiscal Third Quarter 2026 Results
• Neutral Sentiment: Pre-earnings positioning and sentiment: previews and analyst pieces flagged Q3 as a binary event and helped position momentum into the print; short/inverse product interest has risen in recent days. Earnings preview
• Negative Sentiment: Margin & profitability concerns: despite the beat, Applied Digital reported a negative net margin (~-43%) and negative ROE; profitability remains weak which keeps valuation fragile. Press Release
• Negative Sentiment: Rising debt & interest costs: multiple analyst pieces warn that rapid expansion and higher interest expense could outpace cash flow, pressuring margins and execution risk on the remaining buildout commitments. Can APLD Navigate Rising Interest Costs?
• Negative Sentiment: Geopolitical & supply risks: coverage flagged supply-chain exposure tied to geopolitical tensions (e.g., Iran war) that could disrupt equipment deliveries and timelines for capacity ramps. Balance Debt Costs

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research note on Wednesday, January 28th. Lake Street Capital reissued a “buy” rating and set a $45.00 target price on shares of Applied Digital in a research note on Tuesday, December 30th. Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research note on Saturday, January 10th. Northland Securities set a $56.00 target price on shares of Applied Digital in a research note on Wednesday, January 28th. Finally, B. Riley Financial lifted their target price on shares of Applied Digital to $53.00 and gave the company a “buy” rating in a research note on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Applied Digital currently has a consensus rating of “Buy” and a consensus price target of $37.00.

Insider Buying and Selling

In other Applied Digital news, CEO Wes Cummins sold 165,000 shares of the firm’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the transaction, the chief executive officer directly owned 4,176,329 shares in the company, valued at $152,101,902.18. This trade represents a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard N. Nottenburg sold 12,000 shares of the business’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $35.45, for a total transaction of $425,400.00. Following the transaction, the director directly owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. This represents a 4.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,593 shares of company stock valued at $9,003,278 in the last three months. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Teachers Retirement System of The State of Kentucky acquired a new position in Applied Digital during the 3rd quarter worth $994,000. Voya Investment Management LLC lifted its position in Applied Digital by 403.4% during the 3rd quarter. Voya Investment Management LLC now owns 1,464,909 shares of the company’s stock worth $33,605,000 after acquiring an additional 1,173,929 shares during the last quarter. Federated Hermes Inc. acquired a new position in Applied Digital during the 3rd quarter worth $3,204,000. AlphaQuest LLC acquired a new position in Applied Digital during the 3rd quarter worth $1,369,000. Finally, MRA Advisory Group acquired a new position in Applied Digital during the 3rd quarter worth $978,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Stock Performance

The stock has a market cap of $7.77 billion, a price-to-earnings ratio of -51.46 and a beta of 7.25. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. The stock’s 50-day simple moving average is $29.53 and its two-hundred day simple moving average is $29.48.

About Applied Digital

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.