Applied Digital (NASDAQ:APLD) Trading Down 5.5% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price traded down 5.5% on Tuesday . The stock traded as low as $29.95 and last traded at $31.06. 28,613,421 shares changed hands during trading, a decline of 21% from the average session volume of 36,313,875 shares. The stock had previously closed at $32.87.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Compass Point assumed coverage on shares of Applied Digital in a research note on Monday, September 15th. They set a “buy” rating for the company. HC Wainwright lifted their price target on shares of Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Northland Securities lifted their price target on shares of Applied Digital to $40.00 and gave the company an “outperform” rating in a research note on Friday, October 10th. Craig Hallum lifted their price target on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Finally, Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a research note 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $26.20.

Applied Digital Trading Down 5.5%

The company has a market capitalization of $8.69 billion, a PE ratio of -27.49 and a beta of 6.77. The company’s fifty day moving average is $25.10 and its 200-day moving average is $15.21. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65.

Applied Digital (NASDAQ:APLD) last released 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 $38.01 million for the quarter, compared to analyst estimates of $52.25 million. During the same period in the previous year, the company earned ($0.15) earnings per share. The business’s revenue for the quarter was up 84.3% on a year-over-year basis. On average, analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other Applied Digital news, Director Chuck Hastings sold 50,000 shares of Applied Digital stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $35.69, for a total value of $1,784,500.00. Following the transaction, the director directly owned 451,612 shares of the company’s stock, valued at approximately $16,118,032.28. The trade was a 9.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard N. Nottenburg sold 34,375 shares of Applied Digital stock in a transaction on Friday, October 24th. The stock was sold at an average price of $33.23, for a total transaction of $1,142,281.25. Following the completion of the transaction, the director directly owned 263,612 shares in the company, valued at $8,759,826.76. This represents a 11.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 834,285 shares of company stock valued at $19,090,154. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently bought and sold shares of the company. Mission Wealth Management LP purchased a new position in Applied Digital in the third quarter worth $311,000. Jones Financial Companies Lllp lifted its stake in shares of Applied Digital by 108.0% during the third quarter. Jones Financial Companies Lllp now owns 72,391 shares of the company’s stock worth $1,572,000 after buying an additional 37,588 shares during the period. Principal Financial Group Inc. lifted its stake in shares of Applied Digital by 28.7% during the third quarter. Principal Financial Group Inc. now owns 16,053 shares of the company’s stock worth $368,000 after buying an additional 3,580 shares during the period. Independent Advisor Alliance acquired a new stake in shares of Applied Digital during the third quarter worth $202,000. Finally, AlphaQuest LLC acquired a new stake in shares of Applied Digital during the third quarter worth $1,369,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.