Applied Digital (NASDAQ:APLD) Shares Down 12.8% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price dropped 12.8% on Wednesday . The company traded as low as $22.93 and last traded at $23.22. 31,083,272 shares changed hands during trading, an increase of 27% from the average daily volume of 24,564,672 shares. The stock had previously closed at $26.62.

Applied Digital News Roundup

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 picks following the sector selloff, suggesting the firm views the recent weakness as an attractive entry point. B. Riley names Core Scientific and Applied Digital top HPC picks after sector selloff
• Positive Sentiment: Northland Securities reiterated an “Outperform” rating and an $82 price target, well above the current market level. Its forecasts call for improving losses to approximately $0.44 per share in fiscal 2027, compared with a projected $1.10 loss in the current year. Northland Securities Applied Digital estimates
• Positive Sentiment: Lucid Capital assigned Applied Digital a “Buy” rating, while Needham reaffirmed its “Buy” rating, adding to the recent Wall Street support for the company’s AI infrastructure strategy. Applied Digital Receives a Buy from Lucid Capital Needham Reaffirms Buy Rating for Applied Digital
• Positive Sentiment: Revenue surged more than 400% year over year in the latest quarter, reinforcing the thesis that Applied Digital is becoming a significant owner and operator of AI data-center real estate. As Revenue Surges 400%, Is Applied Digital Stock a Buy?
• Negative Sentiment: The main near-term headwind is a sharp selloff across former Bitcoin miners pivoting to AI data centers, with Applied Digital among the stocks that have lost substantial value over the past month. Investors are questioning whether the sector’s growth outlook can justify elevated valuations. Data Center Stocks Under Pressure
• Negative Sentiment: Applied Digital’s latest quarterly loss exceeded analyst expectations despite the revenue increase, highlighting ongoing profitability and execution concerns. Broader reports of losses and forced asset sales in leveraged AI-infrastructure investments may also be weighing on sentiment. Citadel buys Situational Awareness portfolio after AI stock losses

Analyst Upgrades and Downgrades

Several research firms have issued reports on APLD. Northland Securities set a $82.00 price target on Applied Digital and gave the company an “outperform” rating in a report on Wednesday, June 17th. Lake Street Capital increased their price objective on Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Compass Point reissued a “buy” rating and set a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. Citizens Jmp lifted their target price on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Thursday, May 21st. Finally, Lucid Cap Mkts raised Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Three research 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $67.15.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The firm has a market cap of $7.97 billion, a price-to-earnings ratio of -31.27 and a beta of 5.67. The stock’s fifty day moving average price is $37.61 and its 200-day moving average price is $34.39.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 17.53% and a negative net margin of 37.78%.The firm had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same period in the prior year, the business posted ($0.24) EPS. The company’s revenue for the quarter was up 406.3% on a year-over-year basis. Equities research analysts predict that Applied Digital Corporation will post -1.1 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Albion Financial Group UT purchased a new stake in Applied Digital in the 4th quarter worth about $25,000. Activest Wealth Management purchased a new position in Applied Digital during the 4th quarter valued at about $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital in the 4th quarter valued at about $25,000. McMillan Office Inc. acquired a new position in shares of Applied Digital in the 4th quarter valued at about $25,000. Finally, Larson Financial Group LLC lifted its position in shares of Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after purchasing an additional 1,129 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 (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.