Applied Digital (NASDAQ:APLD) Shares Down 8.4% – What’s Next?

Shares of Applied Digital Co. (NASDAQ:APLD) dropped 8.4% during mid-day trading on Wednesday . The stock traded as low as $8.47 and last traded at $8.63. Approximately 6,398,726 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 14,245,130 shares. The stock had previously closed at $9.42.

Wall Street Analyst Weigh In

APLD has been the subject of several analyst reports. Cantor Fitzgerald assumed coverage on Applied Digital in a research note on Friday, December 20th. They set an “overweight” rating and a $15.00 price objective for the company. Roth Mkm restated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a report on Friday, November 1st. Lake Street Capital increased their price target on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Finally, Craig Hallum lifted their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital presently has an average rating of “Buy” and a consensus target price of $11.14.

Applied Digital Stock Down 7.4 %

The firm’s 50-day simple moving average is $8.56 and its two-hundred day simple moving average is $6.86. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The company has a market capitalization of $1.84 billion, a price-to-earnings ratio of -7.45 and a beta of 4.78.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.13. The firm had revenue of $60.70 million during the quarter, compared to analysts’ expectations 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 was up 67.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.10) earnings per share. Sell-side analysts predict that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the transaction, the director now owns 208,506 shares of the company’s stock, valued at $1,670,133.06. The trade was a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 359,369 shares of company stock valued at $3,115,161 in the last 90 days. 11.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently made changes to their positions in the business. Geode Capital Management LLC lifted its stake in shares of Applied Digital by 48.7% in the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock valued at $25,258,000 after purchasing an additional 1,002,862 shares in the last quarter. Hood River Capital Management LLC lifted its position in Applied Digital by 8.7% during the second quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock valued at $57,098,000 after buying an additional 771,699 shares in the last quarter. Alight Capital Management LP purchased a new stake in Applied Digital during the second quarter worth approximately $3,570,000. Barclays PLC increased its position in shares of Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after acquiring an additional 428,428 shares in the last quarter. Finally, Thomist Capital Management LP purchased a new position in shares of Applied Digital in the 2nd quarter valued at $2,529,000. Institutional investors and hedge funds 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.