Applied Digital (NASDAQ:APLD) Stock Price Down 2.3% – Here’s Why

Shares of Applied Digital Corporation (NASDAQ:APLD) were down 2.3% on Monday. The stock traded as low as $17.50 and last traded at $17.83. 26,291,950 shares were traded during mid-day trading, an increase of 14% from the average session volume of 23,129,063 shares. The stock had previously closed at $18.25.

Analyst Ratings Changes

Several brokerages have issued reports on APLD. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a report on Thursday, October 8th. UBS Group restated a “buy” rating on shares of Applied Digital in a report on Thursday, October 8th. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Roth Capital set a $35.00 price target on shares of Applied Digital and gave the stock a “buy” rating in a research report on Wednesday, October 21st. Finally, B. Riley Financial reiterated a “buy” rating and set a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $59.75.

Applied Digital Trading Up 4.5%

The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock has a market capitalization of $6.17 billion, a P/E ratio of -12.43 and a beta of 5.99. The company has a 50-day moving average price of $24.61 and a 200 day moving average price of $31.60.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. The company had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same quarter last year, the company earned ($0.03) earnings per share. The firm’s revenue for the quarter was up 367.8% compared to the same quarter last year. On average, research analysts forecast that Applied Digital Corporation will post -2.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Wes Cummins purchased 55,803 shares of the stock in a transaction dated Friday, October 16th. The shares were acquired at an average cost of $18.04 per share, for a total transaction of $1,006,686.12. Following the acquisition, the chief executive officer owned 5,874,453 shares of the company’s stock, valued at approximately $105,975,132.12. This represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 75,000 shares of Applied Digital stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The SEC filing for this sale provides additional information. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of APLD. Blueprint Investment Partners LLC acquired a new stake in shares of Applied Digital during the third quarter worth $246,000. Blueprint Financial Advisors LLC purchased a new stake in shares of Applied Digital during the third quarter valued at $246,000. Victory Financial Group LLC increased its position in shares of Applied Digital by 81.4% in the 3rd quarter. Victory Financial Group LLC now owns 13,867 shares of the company’s stock valued at $338,000 after acquiring an additional 6,223 shares during the period. Flagship Harbor Advisors LLC increased its position in shares of Applied Digital by 26.9% in the 3rd quarter. Flagship Harbor Advisors LLC now owns 17,608 shares of the company’s stock valued at $429,000 after acquiring an additional 3,728 shares during the period. Finally, McGuire Investment Group LLC increased its position in shares of Applied Digital by 1.9% in the 3rd quarter. McGuire Investment Group LLC now owns 158,724 shares of the company’s stock valued at $3,868,000 after acquiring an additional 2,950 shares during the period. Institutional investors own 65.67% of the company’s stock.

About Applied Digital

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.