Applied Digital (NASDAQ:APLD) Stock Price Down 2.1% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s share price dropped 2.1% during trading on Friday . The stock traded as low as $26.94 and last traded at $27.39. 21,887,719 shares traded hands during trading, a decline of 11% from the average daily volume of 24,537,156 shares. The stock had previously closed at $27.97.

More Applied Digital News

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

• Positive Sentiment: B. Riley named Applied Digital one of its top high-performance computing (HPC) picks, suggesting the recent sector selloff may have created an attractive entry point for companies positioned to benefit from AI data-center demand. B. Riley names Core Scientific and Applied Digital top HPC picks after sector selloff
• Positive Sentiment: Northland Securities maintained an Outperform rating and an $82 price target. Its FY2027 forecast calls for a narrower $0.44-per-share loss, compared with a projected $1.10 loss for the current year, implying improving profitability over time.
• Positive Sentiment: Recent coverage highlighted revenue growth of more than 400% year over year and Applied Digital’s expanding role as an AI data-center real estate owner, supporting the long-term growth narrative. As Revenue Surges 400%, Is Applied Digital Stock a Buy?
• Positive Sentiment: Lucid Capital assigned Applied Digital a Buy rating, while Needham reaffirmed its Buy rating, adding to the favorable sell-side view. Applied Digital Receives a Buy from Lucid Capital Needham Reaffirms Buy Rating
• Neutral Sentiment: Northland expects Applied Digital to remain unprofitable through each quarter of FY2027, forecasting quarterly losses of $0.06 to $0.14 per share. The estimates are a forward-looking signal rather than a change in rating.
• Negative Sentiment: Investor sentiment remains pressured by the AI-infrastructure selloff and Applied Digital’s continuing losses. Its latest quarter missed the EPS consensus estimate despite strong revenue, underscoring execution and profitability risks.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on APLD. Compass Point reissued a “buy” rating and issued a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Roth Capital reaffirmed a “buy” rating and set a $65.00 price objective on shares of Applied Digital in a research note on Thursday, April 23rd. Needham & Company LLC reaffirmed a “buy” rating and set a $83.00 target price on shares of Applied Digital in a report on Tuesday, July 28th. Lake Street Capital boosted their target price on shares of Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Finally, Zacks Research raised shares of Applied Digital from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $67.15.

Applied Digital Trading Down 2.1%

The stock has a market cap of $7.98 billion, a PE ratio of -30.78 and a beta of 5.67. The company has a debt-to-equity ratio of 2.88, a quick ratio of 2.38 and a current ratio of 4.01. The company has a 50 day moving average of $37.24 and a two-hundred day moving average of $34.34.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The business had revenue of $240.35 million for the quarter, compared to analysts’ expectations of $96.85 million. During the same quarter in the prior year, the company posted ($0.24) EPS. The business’s revenue for the quarter was up 406.3% compared to the same quarter last year. Sell-side analysts anticipate that Applied Digital Corporation will post -0.88 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the stock. Cannon Capital Management Inc. purchased a new stake in shares of Applied Digital during the fourth quarter worth about $3,635,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Applied Digital during the 4th quarter worth about $2,674,000. Prime Capital Investment Advisors LLC purchased a new position in Applied Digital in the 4th quarter valued at about $1,284,000. M&T Bank Corp purchased a new position in Applied Digital in the 4th quarter valued at about $2,232,000. Finally, TFR Capital LLC. acquired a new stake in Applied Digital in the 4th quarter worth about $1,741,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.