Applied Digital (NASDAQ:APLD) Trading Down 7.4% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) was down 7.4% on Thursday . The company traded as low as $21.29 and last traded at $21.37. Approximately 37,638,558 shares changed hands during mid-day trading, an increase of 5% from the average daily volume of 35,862,074 shares. The stock had previously closed at $23.09.

Wall Street Analyst Weigh In

A number of brokerages have commented on APLD. Craig Hallum raised their price target on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Needham & Company LLC reissued a “buy” rating and issued a $41.00 target price on shares of Applied Digital in a report on Wednesday, October 29th. Compass Point began coverage on Applied Digital in a research note on Monday, September 15th. They issued a “buy” rating on the stock. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research note on Sunday, October 19th. Finally, Citigroup reissued an “outperform” rating on shares of Applied Digital in a report on Thursday, October 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Down 7.4%

The company has a market cap of $6.08 billion, a P/E ratio of -18.91 and a beta of 6.77. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.29. The firm has a fifty day moving average price of $27.95 and a 200 day moving average price of $17.05.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The business had revenue of $64.22 million for the quarter, compared to the consensus estimate of $52.25 million. During the same quarter in the prior year, the company earned ($0.15) EPS. The firm’s quarterly revenue was up 84.3% on a year-over-year basis. Equities research analysts forecast that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Chuck Hastings sold 25,000 shares of the company’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $34.27, for a total transaction of $856,750.00. Following the transaction, the director owned 426,612 shares of the company’s stock, valued at approximately $14,619,993.24. This represents a 5.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Rachel H. Lee sold 24,213 shares of Applied Digital stock in a transaction on Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the completion of the sale, the director directly owned 59,400 shares of the company’s stock, valued at $1,972,080. This trade represents a 28.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 823,035 shares of company stock valued at $18,930,179 over the last three months. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently made changes to their positions in the company. Atlantic Union Bankshares Corp acquired a new stake in Applied Digital in the second quarter worth about $25,000. Larson Financial Group LLC lifted its position in Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after purchasing an additional 1,129 shares during the period. Northwestern Mutual Wealth Management Co. bought a new position in shares of Applied Digital in the 2nd quarter valued at about $26,000. Dagco Inc. acquired a new stake in shares of Applied Digital during the 3rd quarter worth approximately $27,000. Finally, PNC Financial Services Group Inc. bought a new stake in shares of Applied Digital during the first quarter worth approximately $28,000. Institutional investors and hedge funds 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.