Applied Digital (NASDAQ:APLD) Trading Down 7.2% – Here’s Why

Shares of Applied Digital Co. (NASDAQ:APLD) fell 7.2% during mid-day trading on Friday . The company traded as low as $5.55 and last traded at $5.66. 10,584,400 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 26,285,844 shares. The stock had previously closed at $6.10.

Wall Street Analysts Forecast Growth

APLD has been the subject of several research analyst reports. Needham & Company LLC reiterated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Monday, February 24th. Compass Point began coverage on Applied Digital in a research report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 target price for the company. HC Wainwright increased their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Northland Securities boosted their price objective on shares of Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a report on Tuesday, February 4th. Finally, Cantor Fitzgerald decreased their target price on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 15th. Nine investment analysts have rated the stock with a buy rating, According to MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $12.11.

Applied Digital Stock Down 7.5 %

The company has a 50 day moving average of $7.82 and a 200-day moving average of $7.99. The company has a market capitalization of $1.26 billion, a P/E ratio of -3.26 and a beta of 4.69. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.08. The firm had revenue of $63.87 million for the quarter, compared to analysts’ expectations of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The business’s revenue was up 51.3% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.05) earnings per share. As a group, equities analysts anticipate that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the sale, the director now directly owns 342,923 shares in the company, valued at $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hood River Capital Management LLC boosted its stake in Applied Digital by 10.7% during the fourth quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company’s stock worth $115,726,000 after acquiring an additional 1,464,854 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Applied Digital by 39.1% in the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company’s stock worth $97,487,000 after purchasing an additional 3,587,619 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Applied Digital by 54.4% in the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company’s stock worth $36,117,000 after buying an additional 1,665,335 shares during the last quarter. Van ECK Associates Corp increased its position in Applied Digital by 113.8% during the 4th quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock valued at $33,649,000 after buying an additional 2,344,572 shares in the last quarter. Finally, Pertento Partners LLP raised its stake in Applied Digital by 49.0% during the fourth quarter. Pertento Partners LLP now owns 2,528,717 shares of the company’s stock valued at $19,319,000 after buying an additional 831,705 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

About Applied Digital

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.