Applied Digital (NASDAQ:APLD) Trading Down 3.3% – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s share price traded down 3.3% on Tuesday . The stock traded as low as $7.68 and last traded at $7.71. 3,378,580 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 8,688,786 shares. The stock had previously closed at $7.97.

Analyst Ratings Changes

Several analysts recently commented on the company. Cantor Fitzgerald initiated coverage on Applied Digital in a research report on Friday, December 20th. They set an “overweight” rating and a $15.00 price target for the company. Craig Hallum boosted their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. HC Wainwright lifted their price objective on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Roth Mkm reissued a “buy” rating and issued a $10.00 price target on shares of Applied Digital in a report on Thursday, October 10th. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research note on Friday, November 1st. Seven research analysts have rated the stock with a buy rating, According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $11.14.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a market capitalization of $1.61 billion, a PE ratio of -6.51 and a beta of 4.67. The firm has a 50 day moving average of $8.53 and a 200-day moving average of $6.72.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, topping the consensus estimate of ($0.28) by $0.13. The firm had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The business’s quarterly revenue was up 67.2% on a year-over-year basis. During the same quarter last year, the firm posted ($0.10) EPS. Research analysts forecast that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the transaction, the director now directly owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. This trade represents a 4.58 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of Applied Digital stock in a transaction on Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the completion of the transaction, the director now owns 433,686 shares in the company, valued at approximately $3,196,265.82. The trade was a 15.57 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 359,369 shares of company stock worth $3,115,161 in the last 90 days. Corporate insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Charles Schwab Investment Management Inc. raised its position in Applied Digital by 36.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock valued at $7,419,000 after buying an additional 240,554 shares during the last quarter. Quadrature Capital Ltd bought a new position in shares of Applied Digital in the third quarter valued at approximately $545,000. Barclays PLC grew its position 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 buying an additional 428,428 shares in the last quarter. Virtu Financial LLC bought a new position in Applied Digital in the third quarter valued at $2,030,000. Finally, B. Riley Wealth Advisors Inc. lifted its position in Applied Digital by 66.1% in the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock worth $4,609,000 after buying an additional 308,223 shares during the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

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.