Applied Digital (NASDAQ:APLD) Shares Down 1.2% – Should You Sell?
by Danessa Lincoln · The Markets DailyApplied Digital Corporation (NASDAQ:APLD – Get Free Report) shares were down 1.2% during trading on Thursday . The stock traded as low as $30.56 and last traded at $31.53. Approximately 14,873,208 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 35,888,000 shares. The stock had previously closed at $31.91.
Applied Digital News Roundup
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Broader AI spending trends remain a potential tailwind for Applied Digital’s neocloud/data‑center business — analysts expect large increases in AI infrastructure budgets in 2026 that could support long‑term demand for specialized cloud capacity. AI Spending Is Poised to Hit $700 Billion in 2026
- Neutral Sentiment: Short‑interest reports show anomalous/zero values and a 0.0 days-to-cover reading (likely a data/reporting glitch), so there’s no clear evidence of a rising coordinated short position driving the move. Monitor later filings for a reliable signal.
- Neutral Sentiment: Commentary about volatility and “volatile stocks” highlights that APLD’s high beta makes it prone to sharp swings — this is a reminder that both downside and upside moves can be amplified regardless of fundamentals. 3 Volatile Stocks That Fall Short
- Negative Sentiment: NVIDIA sold its Applied Digital position in its Q4 13F filing and publicly exited an ARM stake — the sale of APLD was highlighted by multiple outlets and is being read as reduced institutional confidence relative to NVIDIA’s continued holdings in other neocloud peers. That 13F disclosure triggered selling pressure and negative sentiment around APLD. NVIDIA’s 13F Bombshell: A New AI Power Trio Emerges
- Negative Sentiment: Market articles reporting that APLD dropped after NVIDIA’s disposal amplified the move; news pieces cited a multi‑day losing streak and direct links between NVIDIA’s divestiture and APLD’s decline. Applied Digital (APLD) Loses 4.9% as Nvidia Disposes of Shares MSN: Applied Digital loses 4.9%
Wall Street Analyst Weigh In
A number of analysts have recently commented on APLD shares. Needham & Company LLC restated a “buy” rating and issued a $41.00 price target on shares of Applied Digital in a report on Thursday, January 8th. Lake Street Capital reaffirmed a “buy” rating and set a $45.00 price target on shares of Applied Digital in a research report on Tuesday, December 30th. Northland Securities set a $56.00 price target on shares of Applied Digital in a research note on Wednesday, January 28th. Roth Mkm reissued a “buy” rating on shares of Applied Digital in a research report on Tuesday. Finally, Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital currently has a consensus rating of “Buy” and a consensus price target of $37.00.
View Our Latest Analysis on APLD
Applied Digital Trading Down 7.9%
The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. The firm has a fifty day moving average price of $32.01 and a 200 day moving average price of $26.94. The company has a market cap of $8.12 billion, a price-to-earnings ratio of -53.78 and a beta of 7.25.
Insider Activity
In other Applied Digital news, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $36.42, for a total value of $6,009,300.00. Following the sale, the chief executive officer owned 4,176,329 shares in the company, valued at $152,101,902.18. This represents a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the sale, the director directly owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. The trade was a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 244,593 shares of company stock valued at $9,003,278 over the last quarter. 9.50% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Applied Digital
A number of large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its position 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 purchasing an additional 8,692 shares during the period. NewEdge Advisors LLC boosted its holdings in shares of Applied Digital by 239.1% during the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after buying an additional 23,457 shares during the period. Geneos Wealth Management Inc. grew its stake in Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock valued at $37,000 after buying an additional 3,542 shares during the last quarter. Strs Ohio bought a new position in Applied Digital in the 1st quarter valued at about $71,000. Finally, Vanguard Personalized Indexing Management LLC acquired a new stake in Applied Digital during the second quarter worth approximately $102,000. 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.