Applied Digital (NASDAQ:APLD) Shares Down 3.8% – Here’s What Happened
by Kim Johansen · The Markets DailyApplied Digital Corporation (NASDAQ:APLD – Get Free Report) shares were down 3.8% during mid-day trading on Friday . The company traded as low as $34.82 and last traded at $34.98. Approximately 35,158,811 shares traded hands during trading, an increase of 29% from the average daily volume of 27,191,814 shares. The stock had previously closed at $36.35.
Key Applied Digital News
Here are the key news stories impacting Applied Digital this week:
- Positive Sentiment: Applied Digital signed a 15‑year lease with a U.S. hyperscaler for ~300 MW at its Delta Forge 1 campus, a deal worth about $7.5 billion that pushes total contracted lease revenue above $23 billion — the primary driver of today’s rally. Reuters: Applied Digital signs $7.5 billion lease
- Positive Sentiment: The company’s press release and coverage highlight the Delta Forge 1 lease as expanding investment‑grade customer revenue and validating Applied Digital’s AI data‑center strategy. GlobeNewswire: Delta Forge 1 lease
- Positive Sentiment: Analysts responded: Needham raised its price target to $48 and maintained a buy rating, and Lake Street reiterated its buy — analyst upgrades/coverage helped lift sentiment and buying interest. Benzinga / coverage of Needham PT raise Globe and Mail: Lake Street keeps buy
- Positive Sentiment: Media coverage emphasized the scale of the deal and the company’s expanded contract backlog, with headlines noting a ~12% jump after the announcement and boosting perceived upside for growth investors. Yahoo Finance: Contracts to $23B
- Neutral Sentiment: Options activity spiked (large call volume), indicating speculative interest and short‑term directional bets; this amplifies volatility but doesn’t guarantee sustained fundamental buying.
- Negative Sentiment: Contrarian/analysis pieces caution that the stock’s rapid run raises questions about execution risk, capital intensity, and whether growth can meet lofty expectations — a reminder of downside risk if rollout or tenant performance lags. The Motley Fool: Is it too late to buy?
Wall Street Analyst Weigh In
A number of analysts have recently issued reports on APLD shares. B. Riley Financial boosted their target price on shares of Applied Digital to $53.00 and gave the company a “buy” rating in a research note on Friday, January 9th. Lake Street Capital reissued a “buy” rating and set a $45.00 target price on shares of Applied Digital in a research note on Tuesday, December 30th. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Citizens Jmp reissued a “market outperform” rating and set a $40.00 target price on shares of Applied Digital in a research note on Thursday, April 9th. Finally, Zacks Research lowered shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Wednesday, April 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the company. According to MarketBeat, Applied Digital currently has an average rating of “Moderate Buy” and a consensus price target of $44.33.
Read Our Latest Report on APLD
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 fifty day moving average of $28.27 and a two-hundred day moving average of $29.93. The stock has a market capitalization of $10.00 billion, a P/E ratio of -47.27 and a beta of 7.25.
Applied Digital (NASDAQ:APLD – Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The firm had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business’s revenue was up 139.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.08) earnings per share. On average, analysts predict that Applied Digital Corporation will post -0.52 EPS for the current year.
Insider Buying and Selling at Applied Digital
In related news, Director Chuck Hastings sold 45,987 shares of Applied Digital stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $38.57, for a total value of $1,773,718.59. Following the completion of the sale, the director directly owned 388,372 shares in the company, valued at $14,979,508.04. The trade was a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 9.50% of the stock is owned by insiders.
Institutional Trading of Applied Digital
Institutional investors and hedge funds have recently made changes to their positions in the company. Teachers Retirement System of The State of Kentucky bought a new position in Applied Digital in the third quarter worth about $994,000. Federated Hermes Inc. bought a new position in Applied Digital in the third quarter worth about $3,204,000. AlphaQuest LLC bought a new position in Applied Digital in the third quarter worth about $1,369,000. MRA Advisory Group bought a new position in Applied Digital in the third quarter worth about $978,000. Finally, Vanguard Group Inc. raised its holdings in Applied Digital by 23.2% in the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after purchasing an additional 3,339,062 shares in the last quarter. 65.67% of the stock is currently owned by 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.