Applied Digital (NASDAQ:APLD) Stock Price Down 7.5% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s stock price dropped 7.5% on Wednesday . The stock traded as low as $40.41 and last traded at $41.89. Approximately 15,354,649 shares were traded during trading, a decline of 39% from the average daily volume of 25,275,705 shares. The stock had previously closed at $45.27.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on APLD shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a report on Friday, April 24th. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. B. Riley Financial reaffirmed a “buy” rating and set a $66.00 price objective (up from $53.00) on shares of Applied Digital in a research report on Wednesday, May 27th. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the company an “outperform” rating in a research note on Wednesday, June 17th. Finally, Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Applied Digital has a consensus rating of “Moderate Buy” and a consensus target price of $70.56.

Applied Digital Trading Down 4.2%

The firm has a market capitalization of $11.21 billion, a price-to-earnings ratio of -52.37 and a beta of 5.69. The company has a fifty day moving average price of $41.27 and a 200-day moving average price of $33.88. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65.

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

Insiders Place Their Bets

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director directly owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 35,000 shares of company stock worth $1,182,175 in the last 90 days. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Teachers Retirement System of The State of Kentucky acquired a new stake in shares of Applied Digital during the 3rd quarter valued at about $994,000. Vanguard Group Inc. lifted its stake in Applied Digital by 23.2% during the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after purchasing an additional 3,339,062 shares during the period. Cannon Capital Management Inc. acquired a new stake in Applied Digital during the fourth quarter valued at approximately $3,635,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Applied Digital in the 4th quarter valued at approximately $2,674,000. Finally, Azora Capital LP bought a new stake in shares of Applied Digital in the 3rd quarter valued at approximately $3,000,000. 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.