On August 18, 2026, Applied Digital Corp APLD shares fell 8.6% to a current price of $28.51, which is significantly impacted by its recent price performance. Over the past 52 weeks, shares have fluctuated between a high of $50.73 and a low of $13.16, reflecting the volatility in the stock's value.
- GF Valueā¢ verdict: Current price is $28.51 vs GF Value of $20.54, indicating a 38.8% overvaluation.
- GF Scoreā¢: 44/100, suggesting an average rating across various metrics.
- Most notable signal: Insider activity shows $31.9M sold by insiders over the past 12 months with no buying activity.
Is APLD Overvalued or Undervalued?
Applied Digital Corp's current price of $28.51 exceeds its GF Valueā¢, which is estimated at $20.54. This indicates that the stock is overvalued by approximately 38.8%. The GF Valueā¢ is GuruFocus' proprietary estimate of a stock's intrinsic value, derived from historical trading multiples, past business growth, and future performance projections. In this case, the significant overvaluation poses risks for potential investors as it suggests that the stock may not sustain its current price levels in the long run.
Moreover, the GF Valuation label indicates that the stock is significantly overvalued. For a cash-flow-negative company like APLD, traditional earnings-based metrics such as P/E ratios are less applicable, making a Price-to-Sales (P/S) analysis more relevant. The historical median P/S ratio for APLD is approximately 10.1x, a figure that should be kept in mind when assessing the company's valuation. With APLD's financials indicating a lack of profitability, the current price may not be justified, and the margin of safety appears slim.
How Does APLD's Valuation Compare to Its History?
What Does APLD's GF Scoreā¢ Tell Us?
The GF Scoreā¢ evaluates a stock based on several key factors, providing a comprehensive view of its overall performance and potential. APLD's GF Scoreā¢ of 44/100 reflects an average position among its peers. The score is composed of various sub-ranks, including Financial Strength, Profitability, Growth, Valuation, and Momentum.
| Metric | Rating |
|---|---|
| GF Scoreā¢ | 44 |
| Financial Strength | 3/10 |
| Profitability | 1/10 |
| Growth | 0/10 |
| Valuation | 3/10 |
| Momentum | 8/10 |
APLD's strongest area is its Momentum rank of 8/10, indicating a positive trend over recent months. Conversely, the weakest areas are Profitability and Growth, both rated at 1/10 and 0/10 respectively, highlighting the challenges the company faces in generating earnings and expanding its business. The average GF Scoreā¢ reflects the current state of APLD as a company that is struggling to solidify its financial standing.
What Are Gurus and Insiders Doing with APLD?
Currently, APLD is held by six gurus, with four increasing their positions and three trimming their stakes in recent quarters. This activity suggests a mixed sentiment among institutional investors, with some seeing potential in the stock while others are cautious. This dynamic is crucial for investors looking to gauge the stock's future potential.
Moreover, insider activity has raised some red flags, as insiders sold $31.9 million worth of shares over the past 12 months without any buying occurring. This pattern of selling could signal a lack of confidence among those who are most familiar with the company's operations, which may be a concern for potential investors.
What This Means for Investors
In conclusion, Applied Digital Corp APLD appears to be overvalued based on the GF Valueā¢ assessment, which indicates a significant discrepancy between its current price and estimated fair value. The combination of poor profitability metrics and concerning insider selling activity reinforces the notion that the stock may not provide a safe entry point for investors at this time. For further information, visit the Applied Digital Corp (APLD) stock page, where you can explore additional insights and data.
Frequently Asked Questions
What is APLD's GF Scoreā¢?
APLD's GF Scoreā¢ is 44/100, indicating an average performance across various metrics used to assess the company's potential.
Is APLD overvalued or undervalued?
APLD is currently overvalued, as its GF Valueā¢ of $20.54 suggests a significant premium over its current trading price.
What is APLD's P/E ratio?
No P/E ratio data is available for APLD, as the company is unprofitable. Instead, investors should consider other metrics such as the Price-to-Sales ratio for assessment.
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].
