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

Applied Digital Co. (NASDAQ:APLD)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $4.92, but opened at $4.40. Applied Digital shares last traded at $4.39, with a volume of 2,706,967 shares traded.

Wall Street Analysts Forecast Growth

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

Applied Digital Stock Up 8.7 %

The stock has a market cap of $1.23 billion, a price-to-earnings ratio of -3.19 and a beta of 5.18. The firm’s 50-day moving average is $7.32 and its 200 day moving average is $7.97. 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 issued its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The business had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. During the same period last year, the company posted ($0.05) EPS. The business’s quarterly revenue was up 51.3% on a year-over-year basis. Sell-side analysts anticipate that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the transaction, the director now owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This trade represents a 5.51 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Institutional investors have recently added to or reduced their stakes in the business. Wilmington Savings Fund Society FSB boosted its position in shares of Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after buying an additional 2,000 shares during the period. R Squared Ltd purchased a new position in Applied Digital in the 4th quarter worth approximately $36,000. US Bancorp DE acquired a new stake in Applied Digital in the fourth quarter valued at approximately $37,000. Jones Financial Companies Lllp acquired a new stake in Applied Digital in the fourth quarter valued at approximately $39,000. Finally, Spire Wealth Management purchased a new stake in shares of Applied Digital during the fourth quarter valued at approximately $43,000. 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.