Applied Digital (NASDAQ:APLD) Shares Down 6.5% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price was down 6.5% during trading on Wednesday . The company traded as low as $44.65 and last traded at $44.7470. Approximately 15,903,389 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 25,908,309 shares. The stock had previously closed at $47.86.

Analysts Set New Price Targets

A number of research firms have recently issued reports on APLD. Needham & Company LLC increased their target price on Applied Digital from $51.00 to $66.00 and gave the company a “buy” rating in a report on Thursday, May 21st. B. Riley Financial reaffirmed a “buy” rating and set a $66.00 target price (up from $53.00) on shares of Applied Digital in a research note on Wednesday, May 27th. Wall Street Zen downgraded Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Compass Point restated a “buy” rating and set a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $59.11.

Applied Digital Trading Down 8.5%

The company has a 50 day moving average of $35.96 and a 200 day moving average of $32.00. The firm has a market cap of $11.54 billion, a P/E ratio of -54.58 and a beta of 5.69. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. During the same quarter last year, the firm earned ($0.08) earnings per share. Applied Digital’s revenue was up 139.3% compared to the same quarter last year. Analysts predict that Applied Digital Corporation will post -0.68 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company’s stock, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 35,000 shares of company stock worth $1,182,175 over the last three months. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently modified their holdings of APLD. AQR Capital Management LLC boosted its holdings in shares of Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock worth $106,000 after buying an additional 8,692 shares during the period. NewEdge Advisors LLC lifted its position in Applied Digital by 239.1% during the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after acquiring an additional 23,457 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Applied Digital by 113.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock worth $37,000 after acquiring an additional 3,542 shares during the last quarter. Strs Ohio bought a new stake in Applied Digital during the first quarter valued at about $71,000. Finally, Cetera Investment Advisers boosted its holdings in Applied Digital by 61.0% during the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock valued at $621,000 after acquiring an additional 23,360 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.