Applied Digital (NASDAQ:APLD) Lowered to “Sell” Rating by Wall Street Zen

Wall Street Zen lowered shares of Applied Digital (NASDAQ:APLD) from a hold rating to a sell rating in a research report sent to investors on Saturday morning.

A number of other research analysts have also recently issued reports on APLD. Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 20th. Northland Securities set a $56.00 price target on shares of Applied Digital in a research report on Wednesday, January 28th. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Wednesday, January 28th. Finally, Citizens Jmp reissued a “market outperform” rating and set a $40.00 price target on shares of Applied Digital in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and an average price target of $39.20.

Applied Digital Trading Up 2.7%

Shares of NASDAQ APLD opened at $26.26 on Friday. Applied Digital has a 1 year low of $3.31 and a 1 year high of $42.27. The stock has a market cap of $7.50 billion, a P/E ratio of -35.48 and a beta of 7.25. The firm has a 50-day moving average of $28.88 and a 200 day moving average of $29.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 4.82.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. During the same period last year, the business earned ($0.08) earnings per share. The company’s revenue was up 139.3% on a year-over-year basis. As a group, sell-side analysts expect that Applied Digital will post -0.96 EPS for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Chuck Hastings sold 45,987 shares of Applied Digital stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total value of $1,773,718.59. Following the completion of the transaction, the director directly owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. The trade was a 10.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $38.54, for a total transaction of $385,400.00. Following the completion of the transaction, the director directly owned 200,859 shares of the company’s stock, valued at $7,741,105.86. This trade represents a 4.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 over the last ninety days. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Noble Wealth Management PBC bought a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Albion Financial Group UT bought a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Activest Wealth Management bought a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Ameriflex Group Inc. bought a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. Finally, McMillan Office Inc. bought a new stake in shares of Applied Digital in the fourth quarter worth approximately $25,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Applied Digital

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

• Positive Sentiment: Q3/Q1 revenue beat and rapid growth: APLD reported revenue that surged ~139% Y/Y and exceeded Wall Street expectations, with non‑GAAP profit above estimates—fueling optimism about demand for AI/data‑center capacity. APLD Q1 Deep Dive
• Positive Sentiment: Major capacity expansion and improved lease economics: Applied broke ground on the 300 MW Delta Forge 1 AI campus, recast leases with hyperscaler CoreWeave (improving credit metrics and lowering cost of capital) and reiterated high‑growth NOI targets. These moves underpin the company’s long‑term AI/data‑center thesis. Applied Digital Expands AI Campus
• Positive Sentiment: Analyst / options flow support: Citizens Jmp reaffirmed a Market Outperform rating with a $40 target, and intraday reports show heavy call‑option activity—both signal institutional and speculative bullish interest. Citizens Jmp rating Options Flow
• Neutral Sentiment: Short interest report shows effectively zero reported short interest (odd/possibly stale data); days‑to‑cover is negligible—this lowers squeeze risk but the data may be unreliable. (internal short‑interest entry)
• Neutral Sentiment: Analyst/think pieces weigh pros and cons: Several deep dives (Seeking Alpha) argue APLD is a long‑term winner in the AI CapEx boom while flagging emerging risks from leverage and cash burn. Still A Buy Despite Emerging Risks Winner In The AI CapEx Boom
• Negative Sentiment: Wider GAAP loss, write‑downs and stock‑based comp weighed on sentiment: Despite the revenue beat, APLD reported a larger net loss than expected and flagged significant non‑cash charges and expanded operating losses—key reasons some investors sold into the rally. Q3 Results — Loss Wider
• Negative Sentiment: Downgrade and cautionary headlines: Zacks moved APLD to a “strong sell” and multiple outlets cautioned about massive cash burn, weak near‑term EPS outlook and a spin‑off charge—pressures that can keep the stock volatile and cap upside. Zacks downgrade Should You Buy the Dip?
• Negative Sentiment: Market reaction so far: Multiple headlines note the stock fell after the beat earlier in the session as investors focused on losses and cash burn; that same tension explains today’s seesaw price action. Why APLD Stock Is Falling

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.