Applied Digital (NASDAQ:APLD) Stock Price Up 9.8% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) was up 9.8% during trading on Tuesday. The stock traded as high as $17.99 and last traded at $17.81. Approximately 26,366,330 shares were traded during mid-day trading, an increase of 14% from the average daily volume of 23,137,373 shares. The stock had previously closed at $16.22.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Applied Digital has leases covering about 1.41 gigawatts across five campuses, valued at roughly $36 billion over their base terms. Around 250 megawatts are already operational in North Dakota, and its tenants include CoreWeave and investment-grade hyperscalers—factors that may cushion it from Texas-specific permitting concerns. Riot’s $28B Lease Shows Why Location and Contracts Matter in AI
• Negative Sentiment: Investors sold data-center and AI infrastructure names after election-related concerns raised the prospect of a freeze on new Texas data-center approvals and tighter scrutiny of development. Although APLD has limited direct Texas exposure, investors appear concerned about wider permitting, power-grid and regulatory risks across the sector. Applied Digital Sinks as Data Center Rout Deepens
• Negative Sentiment: The sell-off spread beyond companies with substantial Texas operations, suggesting market-wide concerns about data-center development and AI infrastructure spending are weighing on APLD as well. Applied Digital and peers fall as Texas data-center fears deepen

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on APLD shares. B. Riley Financial lowered their price objective on Applied Digital from $75.00 to $51.00 and set a “buy” rating on the stock in a research report on Friday, October 30th. Citigroup reissued a “market outperform” rating on shares of Applied Digital in a report on Thursday, October 8th. Roth Capital set a $35.00 target price on shares of Applied Digital and gave the stock a “buy” rating in a research note on Wednesday, October 21st. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Finally, Morgan Stanley set a $41.00 price target on shares of Applied Digital and gave the stock an “equal weight” rating in a research report on Friday, October 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $57.75.

Applied Digital Trading Down 14.7%

The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock has a fifty day simple moving average of $23.16 and a 200 day simple moving average of $30.94.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) 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 business had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same period in the previous year, the business earned ($0.03) earnings per share. The business’s revenue was up 367.8% on a year-over-year basis. As a group, analysts predict that Applied Digital Corporation will post -2.17 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard Nottenburg sold 31,250 shares of the business’s 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 transaction, the director directly owned 102,128 shares of the company’s stock, valued at approximately $2,230,475.52. The trade was a 23.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, President Jason Gechen Zhang purchased 300,000 shares of the company’s stock in a transaction on Friday, October 16th. The stock was acquired at an average price of $18.86 per share, with a total value of $5,658,000.00. Following the completion of the purchase, the president directly owned 2,839,227 shares in the company, valued at $53,547,821.22. This trade represents a 11.81% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several hedge funds have recently modified their holdings of APLD. Maryland State Retirement & Pension System grew its stake in Applied Digital by 19.6% during the third quarter. Maryland State Retirement & Pension System now owns 16,146 shares of the company’s stock valued at $393,000 after acquiring an additional 2,647 shares in the last quarter. Jacobi Capital Management LLC bought a new stake in Applied Digital in the 3rd quarter valued at $126,000. International Private Wealth Advisors LLC lifted its stake in Applied Digital by 203.3% in the 3rd quarter. International Private Wealth Advisors LLC now owns 49,674 shares of the company’s stock worth $1,211,000 after purchasing an additional 33,298 shares in the last quarter. Knights of Columbus Asset Advisors LLC lifted its stake in Applied Digital by 67.9% in the 3rd quarter. Knights of Columbus Asset Advisors LLC now owns 60,058 shares of the company’s stock worth $1,464,000 after purchasing an additional 24,292 shares in the last quarter. Finally, Ethic Inc. lifted its stake in Applied Digital by 61.8% in the 3rd quarter. Ethic Inc. now owns 18,104 shares of the company’s stock worth $441,000 after purchasing an additional 6,915 shares in the last quarter. Hedge funds and other institutional investors 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.