Applied Digital (NASDAQ:APLD) Trading Down 8.5% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) fell 8.5% during trading on Wednesday . The company traded as low as $6.69 and last traded at $6.81. 11,775,619 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 26,174,971 shares. The stock had previously closed at $7.44.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on APLD. HC Wainwright lifted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Compass Point began coverage on shares of Applied Digital in a report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 target price for the company. Needham & Company LLC restated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research note on Monday, February 24th. Cantor Fitzgerald lowered their target price on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Wednesday, January 15th. Finally, Northland Securities boosted their price target on shares of Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 4th. Nine research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $12.11.

Applied Digital Stock Down 10.8 %

The stock has a market cap of $1.48 billion, a PE ratio of -3.84 and a beta of 4.69. The business has a 50 day moving average of $7.92 and a 200-day moving average of $8.02. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The firm had revenue of $63.87 million during the quarter, compared to analysts’ expectations of $62.41 million. During the same quarter in the prior year, the business earned ($0.05) EPS. Applied Digital’s quarterly revenue was up 51.3% compared to the same quarter last year. Equities research analysts predict that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the transaction, the director now directly owns 342,923 shares of the company’s stock, valued at $3,034,868.55. This represents a 5.51 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Victory Capital Management Inc. grew its holdings in shares of Applied Digital by 72.5% in the 3rd quarter. Victory Capital Management Inc. now owns 19,535 shares of the company’s stock worth $161,000 after acquiring an additional 8,212 shares during the period. Intech Investment Management LLC purchased a new stake in shares of Applied Digital in the 3rd quarter worth about $115,000. Charles Schwab Investment Management Inc. grew its stake 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 acquiring an additional 240,554 shares during the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Applied Digital by 14.4% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company’s stock worth $355,000 after purchasing an additional 5,423 shares in the last quarter. Finally, Quantbot Technologies LP acquired a new position in shares of Applied Digital during the 3rd quarter worth approximately $283,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.