Applied Digital (NASDAQ:APLD) Stock Price Down 9% – Time to Sell?

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 9% on Friday . The stock traded as low as $26.84 and last traded at $27.19. Approximately 19,690,053 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 24,365,211 shares. The stock had previously closed at $29.89.

Key Applied Digital News

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

• Positive Sentiment: Several recent articles highlight Applied Digital’s growing appeal as an AI infrastructure play, with analysts pointing to long-term, contracted revenue from its data center assets and saying the stock could have substantial upside heading into earnings. Applied Digital Could Have 155% Upside Ahead of July 27 Q2 Earnings
• Positive Sentiment: Morgan Stanley’s broader view that bitcoin miners and adjacent companies with large, grid-connected power assets could benefit from surging AI data center demand may also support sentiment around Applied Digital’s asset base. Morgan Stanley sees AI data center pivot unlocking upside for bitcoin miners
• Neutral Sentiment: Investors are waiting for Applied Digital’s Q4 earnings, with previews suggesting the company may show strong AI infrastructure growth, but results could be mixed if profitability remains weak. Applied Digital Q4 2026 earnings preview: mixed results anticipated
• Neutral Sentiment: Applied Digital also appeared in a short-interest update showing no reported short interest, which does not provide a meaningful bearish signal but does indicate limited recent short positioning data.
• Negative Sentiment: Some coverage is cautioning that Applied Digital remains a cash-burning stock and that its valuation looks expensive after a strong multi-year run, which could weigh on the shares if earnings do not strongly confirm the growth story. 3 Cash-Burning Stocks We Approach with Caution
• Negative Sentiment: Another article said Applied Digital looks expensive based on value checks after its huge five-year gain, suggesting investors may be demanding more evidence of earnings power before bidding the stock higher. Applied Digital (APLD) Stock Looks Expensive After A 314% Return And Weak Value Checks

Analysts Set New Price Targets

A number of research firms have commented on APLD. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday. Lake Street Capital lifted their price objective on Applied Digital from $70.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Craig Hallum boosted their price objective on Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Zacks Research lowered Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Monday, June 8th. Finally, Morgan Stanley assumed coverage on Applied Digital in a research note on Thursday. They set a “buy” rating and a $36.50 target price on the stock. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $67.15.

Applied Digital Stock Down 9.0%

The firm has a market cap of $7.77 billion, a PE ratio of -36.74 and a beta of 5.67. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The business has a 50-day moving average price of $38.80 and a two-hundred day moving average price of $34.54.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director owned 184,859 shares of the company’s stock, valued at $6,466,367.82. This trade represents a 5.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. The trade was a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 35,000 shares of company stock valued at $1,182,175 over the last three months. 9.50% of the stock is currently owned by insiders.

Institutional Trading of Applied Digital

Large investors have recently made changes to their positions in the company. Handelsbanken Fonder AB grew its holdings in Applied Digital by 1.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company’s stock worth $2,671,000 after acquiring an additional 700 shares in the last quarter. Whitaker Myers Wealth Managers LTD. acquired a new stake in shares of Applied Digital in the 2nd quarter valued at $1,841,000. Hennion & Walsh Asset Management Inc. raised its holdings in shares of Applied Digital by 102.3% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 41,787 shares of the company’s stock valued at $1,559,000 after purchasing an additional 21,130 shares in the last quarter. TrueWealth Advisors LLC purchased a new stake in shares of Applied Digital during the 2nd quarter worth $381,000. Finally, FNY Investment Advisers LLC purchased a new stake in shares of Applied Digital during the 2nd quarter worth $37,000. 65.67% of the stock is currently 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.