Applied Digital (NASDAQ:APLD) Trading Down 8.5% – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s stock price fell 8.5% on Wednesday . The company traded as low as $6.69 and last traded at $6.81. 11,775,619 shares changed hands during trading, a decline of 55% from the average session volume of 26,174,971 shares. The stock had previously closed at $7.44.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price objective on shares of Applied Digital in a research note on Monday, February 24th. Cantor Fitzgerald reduced their price target on shares of Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Wednesday, January 15th. HC Wainwright upped 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. Northland Securities lifted their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a report on Tuesday, February 4th. Finally, Compass Point started coverage on Applied Digital in a research report on Tuesday, January 28th. They set a “buy” rating and a $10.00 target price on the stock. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $12.11.

Applied Digital Stock Down 6.2 %

The company has a market cap of $1.28 billion, a PE ratio of -3.31 and a beta of 4.69. The firm has a 50-day simple moving average of $7.82 and a two-hundred day simple moving average of $7.99. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.08. The company 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 firm’s quarterly revenue was up 51.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.05) EPS. Research analysts anticipate that Applied Digital Co. will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total value of $177,000.00. Following the sale, the director now directly owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This trade represents a 5.51 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 11.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently modified their holdings of APLD. Charles Schwab Investment Management Inc. raised its stake 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 purchasing an additional 240,554 shares during the period. Quadrature Capital Ltd purchased a new stake in shares of Applied Digital during the 3rd quarter valued at $545,000. Rhumbline Advisers increased its holdings in shares of Applied Digital by 68.7% during the 4th quarter. Rhumbline Advisers now owns 258,892 shares of the company’s stock worth $1,978,000 after buying an additional 105,428 shares during the last quarter. Exchange Traded Concepts LLC boosted its holdings in Applied Digital by 37.6% in the fourth quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company’s stock valued at $7,656,000 after acquiring an additional 273,666 shares during the last quarter. Finally, Barclays PLC increased its stake in Applied Digital by 736.8% during the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after acquiring an additional 428,428 shares during the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

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.