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

Applied Digital Co. (NASDAQ:APLD) shares gapped down before the market opened on Monday . The stock had previously closed at $7.12, but opened at $6.55. Applied Digital shares last traded at $6.88, with a volume of 6,283,947 shares trading hands.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. HC Wainwright upped their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Wednesday, January 15th. Northland Securities raised their target price on shares of Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday. Compass Point initiated coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They set a “buy” rating and a $10.00 price target 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. Finally, Roth Mkm restated a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. Nine equities research analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital presently has an average rating of “Buy” and an average price target of $12.11.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The firm’s 50-day moving average price is $8.73 and its two-hundred day moving average price is $7.11.

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

Insiders Place Their Bets

In other news, CEO Wes Cummins sold 200,000 shares of the firm’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 directly owns 3,875,955 shares in the company, valued at $35,658,786. This trade represents a 4.91 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now directly owns 342,923 shares of the company’s stock, valued at $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 289,369 shares of company stock valued at $2,622,461. 11.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently added to or reduced their stakes in the business. Charles Schwab Investment Management Inc. grew its holdings in Applied Digital by 36.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after acquiring an additional 240,554 shares during the period. Quadrature Capital Ltd acquired a new stake in shares of Applied Digital during the 3rd quarter worth approximately $545,000. Exchange Traded Concepts LLC increased its holdings in shares of Applied Digital by 37.6% during the 4th quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company’s stock valued at $7,656,000 after purchasing an additional 273,666 shares in the last quarter. Barclays PLC lifted its stake in shares of Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after purchasing an additional 428,428 shares during the period. Finally, SG Americas Securities LLC boosted its holdings in Applied Digital by 414.5% during the fourth quarter. SG Americas Securities LLC now owns 265,792 shares of the company’s stock worth $2,031,000 after buying an additional 214,133 shares in the last quarter. 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.