Applied Digital (NASDAQ:APLD) Trading Down 4.8% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD) shares dropped 4.8% during mid-day trading on Friday . The stock traded as low as $46.20 and last traded at $47.2770. Approximately 21,453,529 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 26,170,455 shares. The stock had previously closed at $49.65.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on APLD. Lake Street Capital restated a “buy” rating and set a $70.00 price target (up from $55.00) on shares of Applied Digital in a research note on Thursday, May 21st. Citizens Jmp boosted their price target on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 21st. Roth Mkm restated a “buy” rating and set a $65.00 price target on shares of Applied Digital in a research note on Thursday, April 23rd. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Finally, Zacks Research upgraded Applied Digital from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $59.11.

Applied Digital Price Performance

The firm has a market cap of $13.51 billion, a PE ratio of -63.89 and a beta of 5.69. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock has a 50 day moving average price of $33.99 and a two-hundred day moving average price of $31.31.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The business had revenue of $108.55 million for the quarter, compared to analysts’ expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.Applied Digital’s revenue was up 139.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.08) EPS. As a group, equities analysts expect that Applied Digital Corporation will post -0.61 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Richard N. Nottenburg sold 12,500 shares of the company’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 sale, the director owned 208,378 shares in the company, valued at $7,207,795.02. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Large investors have recently bought and sold shares of the company. Noble Wealth Management PBC purchased a new stake in Applied Digital in the fourth quarter valued at approximately $25,000. Albion Financial Group UT acquired a new position in Applied Digital in the fourth quarter valued at approximately $25,000. Activest Wealth Management acquired a new position in Applied Digital in the fourth quarter valued at approximately $25,000. Ameriflex Group Inc. acquired a new position in Applied Digital in the fourth quarter valued at approximately $25,000. Finally, McMillan Office Inc. acquired a new position in Applied Digital in the fourth quarter valued at approximately $25,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.