Applied Digital (NASDAQ:APLD) Stock Falls 1.8% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD)’s share price traded down 1.8% during mid-day trading on Monday. The stock traded as low as $23.06 and last traded at $23.25. Approximately 14,505,166 shares were traded during trading, a decline of 37% from the average daily volume of 22,843,420 shares. The stock had previously closed at $23.68.

Analyst Ratings Changes

APLD has been the subject of a number of analyst reports. Morgan Stanley set a $41.00 price objective on Applied Digital and gave the company an “equal weight” rating in a report on Friday. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 26th. Needham & Company LLC cut their price target on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a report on Thursday. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research report on Thursday. Finally, Northland Securities set a $82.00 target price on Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $62.25.

Applied Digital Price Performance

The stock has a fifty day moving average of $27.00 and a 200-day moving average of $32.50. The firm has a market capitalization of $7.03 billion, a P/E ratio of -14.18 and a beta of 5.99. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 3.90.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. The firm had revenue of $300.39 million for the quarter, compared to analyst estimates of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The company’s revenue was up 367.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.03) EPS. Equities analysts predict that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Large investors have recently made changes to their positions in the company. Whitaker Myers Wealth Managers LTD. acquired a new position in Applied Digital during the 2nd quarter valued at about $1,841,000. Cambridge Investment Research Advisors Inc. grew its stake in shares of Applied Digital by 39.6% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock worth $5,469,000 after purchasing an additional 41,562 shares during the period. Dimensional Fund Advisors LP acquired a new position in Applied Digital in the first quarter valued at about $1,970,000. Situational Awareness LP boosted its holdings in Applied Digital by 14.1% during the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after buying an additional 1,906,178 shares during the last quarter. Finally, TFR Capital LLC. increased its stake in shares of Applied Digital by 425.3% in the 1st quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock valued at $9,497,000 after acquiring an additional 301,954 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.