Applied Digital (NASDAQ:APLD) Trading Down 4.5% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 4.5% during mid-day trading on Wednesday . The stock traded as low as $29.80 and last traded at $29.87. 14,609,193 shares traded hands during trading, a decline of 40% from the average session volume of 24,428,559 shares. The stock had previously closed at $31.27.

Analyst Upgrades and Downgrades

Several research firms have commented on APLD. Roth Capital reaffirmed a “buy” rating and issued a $65.00 target price on shares of Applied Digital in a research note on Thursday, April 23rd. Craig Hallum raised their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research report on Monday. Wall Street Zen downgraded Applied Digital from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Finally, B. Riley Financial reissued a “buy” rating and issued a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $68.15.

Applied Digital Price Performance

The company has a market capitalization of $8.52 billion, a PE ratio of -32.83 and a beta of 5.75. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The company’s 50 day moving average price is $35.84 and its 200-day moving average price is $34.13.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The firm had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same quarter in the previous year, the business posted ($0.24) EPS. Applied Digital’s revenue was up 406.3% compared to the same quarter last year. On average, sell-side analysts forecast that Applied Digital Corporation will post -0.98 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 75,000 shares of Applied Digital stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the transaction, the director directly owned 133,378 shares of the company’s stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 9.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after purchasing an additional 6,445,908 shares in the last quarter. Value Aligned Research Advisors LLC purchased a new position in Applied Digital in the fourth quarter valued at about $138,380,000. Situational Awareness LP lifted its stake in shares of Applied Digital by 87.0% during the fourth quarter. Situational Awareness LP now owns 11,339,060 shares of the company’s stock worth $278,034,000 after purchasing an additional 5,274,905 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc boosted its position in shares of Applied Digital by 38,484.6% in the fourth quarter. Marex Group plc now owns 3,904,759 shares of the company’s stock worth $95,745,000 after buying an additional 3,894,639 shares during the period. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.