Applied Digital (NASDAQ:APLD) Trading Down 5.4% – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD)’s stock price was down 5.4% during mid-day trading on Tuesday . The stock traded as low as $9.86 and last traded at $10.10. Approximately 6,176,113 shares traded hands during trading, a decline of 22% from the average daily volume of 7,878,003 shares. The stock had previously closed at $10.68.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. HC Wainwright raised their price target on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a report on Wednesday, October 16th. Roth Mkm reissued a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. Needham & Company LLC restated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research note on Friday, November 1st. B. Riley lifted their price objective on shares of Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Finally, Lake Street Capital upped their target price on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Six research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital has an average rating of “Buy” and a consensus target price of $10.50.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The firm has a market capitalization of $2.08 billion, a PE ratio of -8.24 and a beta of 4.65. The firm’s 50 day moving average price is $7.66 and its 200-day moving average price is $5.85.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.13. The company had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. Applied Digital’s revenue for the quarter was up 67.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.10) earnings per share. On average, research analysts expect that Applied Digital Co. will post -0.4 EPS for the current year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 80,000 shares of the firm’s stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the transaction, the director now directly owns 433,686 shares of the company’s stock, valued at approximately $3,196,265.82. This trade represents a 15.57 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, October 17th. The stock was sold at an average price of $8.01, for a total value of $80,100.00. Following the sale, the director now owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. This trade represents a 4.58 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 119,369 shares of company stock valued at $870,161. 11.81% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Headlands Technologies LLC raised its position in shares of Applied Digital by 381.8% in the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after buying an additional 6,933 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Applied Digital in the 3rd quarter valued at about $59,000. ARS Investment Partners LLC purchased a new position in Applied Digital in the 2nd quarter worth approximately $60,000. Beacon Harbor Wealth Advisors Inc. acquired a new position in shares of Applied Digital during the 3rd quarter worth approximately $83,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Applied Digital in the third quarter valued at approximately $88,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.