Applied Digital (NASDAQ:APLD) Trading Up 2.2% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price traded up 2.2% on Tuesday . The stock traded as high as $30.11 and last traded at $29.69. 11,793,757 shares were traded during mid-day trading, a decline of 51% from the average session volume of 24,146,463 shares. The stock had previously closed at $29.06.

Applied Digital News Roundup

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

• Positive Sentiment: AI infrastructure demand remains a supportive industry catalyst. CoreWeave, Nebius and Super Micro rallied after upbeat forecasts highlighted sustained demand for computing capacity, potentially benefiting data-center operators such as Applied Digital. CoreWeave Jumps 18% as AI Capacity Sells Out
• Positive Sentiment: A reported 20-year, $9.1 billion Anthropic lease at a competing data-center project underscores the potential scale and durability of AI hosting contracts. The development reinforces the strategic shift by infrastructure providers from cryptocurrency mining toward AI data centers, although it is not a direct Applied Digital contract announcement. Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
• Neutral Sentiment: Applied Digital is expected to release earnings on Thursday. Investors will likely focus on data-center capacity expansion, customer contracts, cash requirements, debt and the company’s path toward profitability. Applied Digital to Release Earnings on Thursday
• Negative Sentiment: Zacks added APLD to its Rank #5 “Strong Sell” list, adding near-term pressure and reflecting unfavorable analyst or earnings trends. New Strong Sell Stocks for August 13th
• Negative Sentiment: A review of Applied Digital’s 101% one-year rally warns that heavy capital needs, high debt, competition, weaker earnings estimates and an expensive valuation could limit further upside. These concerns are particularly important because the company remains unprofitable and has recently missed earnings expectations despite rapid revenue growth. APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?

Analyst Ratings Changes

APLD has been the topic of several analyst reports. Wall Street Zen cut Applied Digital from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 8th. Citizens Jmp raised their price objective on Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research note on Thursday, May 21st. Morgan Stanley lifted their price objective on shares of Applied Digital from $36.50 to $37.50 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Finally, Craig Hallum increased their target price on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $68.15.

Applied Digital Stock Down 1.6%

The company has a market cap of $8.93 billion, a P/E ratio of -34.32 and a beta of 5.75. The company has a 50 day moving average of $34.47 and a 200-day moving average of $33.97. The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The firm had revenue of $240.35 million for the quarter, compared to the consensus estimate of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The business’s revenue was up 406.3% on a year-over-year basis. During the same period last year, the company posted ($0.24) earnings per share. On average, equities analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 75,000 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several hedge funds have recently modified their holdings of the company. AQR Capital Management LLC grew its holdings in Applied Digital by 84.8% during the first quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock worth $106,000 after acquiring an additional 8,692 shares during the period. NewEdge Advisors LLC lifted its holdings in Applied Digital by 239.1% in the first quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock valued at $187,000 after acquiring an additional 23,457 shares during the period. Geneos Wealth Management Inc. lifted its holdings in Applied Digital by 113.3% in the first quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock valued at $37,000 after acquiring an additional 3,542 shares during the period. Strs Ohio purchased a new stake in Applied Digital in the 1st quarter worth approximately $71,000. Finally, Cetera Investment Advisers grew its stake in shares of Applied Digital by 61.0% during the 2nd quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock worth $621,000 after purchasing an additional 23,360 shares during the period. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.