On August 12, 2026, Applied Digital Corp APLD shares rose 4.9% today, closing at $31.15. The stock has experienced significant volatility over the past year, with a 52-week range between $13.16 and $50.73.
- GF Valueâ„¢ verdict: Current price of $31.15 vs GF Valueâ„¢ of $20.65 indicates a 50.8% overvaluation.
- GF Scoreâ„¢ of 44/100, signifying average performance across various financial metrics.
- Notable signal: Insiders have sold $2.3M worth of shares in the last 3 months, with no buying activity.
Is APLD Overvalued or Undervalued?
Applied Digital Corp's current price of $31.15 is significantly above its GF Valueâ„¢ estimate of $20.65, suggesting that the stock is overvalued by approximately 50.8%. The GF Valueâ„¢ is GuruFocus' proprietary estimate of a company's intrinsic value, which reflects historical trading multiples, past business growth, and expected future performance. In this case, the GF Valueâ„¢ verdict serves as a cautionary indicator rather than a precise target, especially since APLD is an unprofitable and cash-flow-negative company.
The substantial overvaluation signals potential risks for investors. Given the company's current financial instability and the lack of profitability, holding shares at this price may expose investors to significant downside risk. The GF Valuation label of "Significantly Overvalued" further emphasizes the potential for a correction, indicating that the stock may not sustain its current price levels.
How Does APLD's Valuation Compare to Its History?
Currently, Applied Digital Corp does not have a Price-to-Earnings (P/E) ratio available due to its unprofitable status. Therefore, we will not provide a comparison of P/E metrics. However, it is worth noting that the company's valuation, as indicated by its historical Price-to-Sales (P/S) ratio, has been around 10.1x. Given that earnings-based metrics are not applicable, the analysis will focus on the P/S ratio for any future assessments.
What Does APLD's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures the overall financial health and performance of a company based on various factors, including financial strength, profitability, growth potential, valuation, and momentum. APLD's GF Scoreâ„¢ of 44/100 indicates average performance, with notable strengths and weaknesses across its sub-ranks.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 44/100 |
| Financial Strength | 3/10 |
| Profitability | 1/10 |
| Growth | 0/10 |
| Valuation | 3/10 |
| Momentum | 8/10 |
The scores reveal that while APLD has a relatively strong momentum rank of 8/10, indicating recent positive price performance, it struggles significantly in profitability and growth, ranking only 1/10 and 0/10, respectively. The financial strength is also weak at 3/10, which raises concerns about the company's overall stability and operational efficiency.
What Are Gurus and Insiders Doing with APLD?
Currently, 3 gurus hold shares of Applied Digital Corp, with 2 adding to their positions and 2 trimming their holdings in recent quarters. This mixed activity suggests a lack of consensus among institutional investors regarding the stock's future prospects.
In terms of insider activity, the fact that insiders sold $2.3M worth of shares over the past three months without any buying activity raises red flags. This selling can indicate a lack of confidence from those who are closest to the company, suggesting that insiders may believe the stock is overvalued or that the company is facing challenges that could impact its future performance.
What This Means for Investors
Based on the analysis, Applied Digital Corp appears to be overvalued at its current price of $31.15 when compared to the GF Valueâ„¢ estimate of $20.65. The combination of weak profitability, financial strength, and insider selling paints a concerning picture for potential investors. As such, caution is advised for those considering an investment in APLD. For further details and insights, you can visit the Applied Digital Corp APLD stock page for a more comprehensive analysis.
Frequently Asked Questions
What is APLD's GF Scoreâ„¢?
APLD has a GF Scoreâ„¢ of 44/100, indicating average performance relative to other companies in its industry.
Is APLD overvalued or undervalued?
APLD is considered overvalued, with a GF Valueâ„¢ of $20.65 compared to its current price of $31.15.
What is APLD's P/E ratio?
APLD currently has no available P/E ratio due to its unprofitable status, complicating traditional valuation comparisons.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
