Applied Digital (NASDAQ:APLD) Shares Down 2.7% – Here’s Why

Shares of Applied Digital Co. (NASDAQ:APLD) fell 2.7% on Friday . The stock traded as low as $7.65 and last traded at $7.67. 6,020,193 shares changed hands during trading, a decline of 75% from the average session volume of 23,701,330 shares. The stock had previously closed at $7.88.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. HC Wainwright increased their price target on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, January 15th. Craig Hallum raised their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Roth Mkm reiterated a “buy” rating and issued a $10.00 price target on shares of Applied Digital in a report on Thursday, October 10th. Lake Street Capital raised their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Finally, Compass Point began coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They issued a “buy” rating and a $10.00 target price for the company. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $12.11.

Applied Digital Price Performance

The stock has a market cap of $1.74 billion, a price-to-earnings ratio of -4.50 and a beta of 4.78. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The company has a 50-day simple moving average of $8.63 and a two-hundred day simple moving average of $7.14.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.08. The firm had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The company’s quarterly revenue was up 51.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) earnings per share. As a group, equities research analysts forecast that Applied Digital Co. will post -0.96 EPS for the current year.

Insider Activity at Applied Digital

In related news, CEO Wes Cummins sold 200,000 shares of the business’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard N. Nottenburg sold 50,000 shares of the stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $460,000.00. Following the sale, the director now owns 334,317 shares in the company, valued at $3,075,716.40. The trade was a 13.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 270,000 shares of company stock worth $2,477,000. Insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently made changes to their positions in APLD. Vontobel Holding Ltd. grew its stake in shares of Applied Digital by 9.8% during the fourth quarter. Vontobel Holding Ltd. now owns 16,735 shares of the company’s stock worth $128,000 after buying an additional 1,500 shares during the last quarter. Nisa Investment Advisors LLC increased its holdings in Applied Digital by 16.8% in the 4th quarter. Nisa Investment Advisors LLC now owns 11,774 shares of the company’s stock worth $90,000 after purchasing an additional 1,692 shares in the last quarter. Wilmington Savings Fund Society FSB raised its position in Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock valued at $31,000 after purchasing an additional 2,000 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Applied Digital by 8.8% during the third quarter. Wellington Management Group LLP now owns 37,411 shares of the company’s stock worth $309,000 after purchasing an additional 3,040 shares during the last quarter. Finally, Amalgamated Bank boosted its position in Applied Digital by 113.3% during the 4th quarter. Amalgamated Bank now owns 6,538 shares of the company’s stock worth $50,000 after buying an additional 3,473 shares during the period. Institutional investors own 65.67% of the company’s stock.

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.