Applied Digital (NASDAQ:APLD) Shares Down 7.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 7.6% during trading on Wednesday . The company traded as low as $25.52 and last traded at $26.41. 27,009,224 shares were traded during mid-day trading, a decline of 25% from the average session volume of 35,961,578 shares. The stock had previously closed at $28.57.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on APLD shares. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. B. Riley reissued a “buy” rating on shares of Applied Digital in a report on Wednesday, October 22nd. Citigroup restated an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. Lake Street Capital boosted their price objective on Applied Digital from $18.00 to $37.00 and gave the company a “buy” rating in a research report on Friday, October 10th. Finally, HC Wainwright raised their target price on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Down 7.6%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a 50 day simple moving average of $26.89 and a two-hundred day simple moving average of $16.34. The stock has a market cap of $7.51 billion, a P/E ratio of -23.37 and a beta of 6.77.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The company had revenue of $38.01 million for the quarter, compared to analyst estimates of $52.25 million. During the same period last year, the company earned ($0.15) earnings per share. The company’s quarterly revenue was up 84.3% compared to the same quarter last year. Equities research analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Activity at Applied Digital

In related news, Director Chuck Hastings sold 25,000 shares of the business’s stock in a transaction that occurred 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 sale, the director owned 426,612 shares of the company’s stock, valued at $14,619,993.24. The trade was a 5.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Rachel H. Lee sold 24,213 shares of the business’s stock in a transaction on Friday, October 24th. The stock was 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 in the company, valued at $1,972,080. This represents a 28.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 823,035 shares of company stock worth $18,930,179 in the last three months. Insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Mann Financial Group Inc. acquired a new position in Applied Digital in the 3rd quarter valued at approximately $210,000. Advisory Alpha LLC acquired a new position in shares of Applied Digital in the third quarter worth $190,000. Dimensional Fund Advisors LP purchased a new stake in shares of Applied Digital during the third quarter worth $886,000. Legato Capital Management LLC boosted its position in Applied Digital by 11.3% during the third quarter. Legato Capital Management LLC now owns 36,339 shares of the company’s stock valued at $834,000 after purchasing an additional 3,689 shares during the last quarter. Finally, Teachers Retirement System of The State of Kentucky acquired a new stake in Applied Digital during the third quarter valued at $994,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.