Applied Digital (NASDAQ:APLD) Shares Gap Down – Here’s Why

Applied Digital Co. (NASDAQ:APLD) shares gapped down prior to trading on Monday . The stock had previously closed at $4.92, but opened at $4.40. Applied Digital shares last traded at $4.39, with a volume of 2,706,967 shares traded.

Analysts Set New Price Targets

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

Applied Digital Stock Performance

The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock has a market cap of $1.17 billion, a price-to-earnings ratio of -3.04 and a beta of 5.18. The firm’s 50-day moving average is $7.40 and its two-hundred day moving average is $8.00.

Applied Digital (NASDAQ:APLD) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The business had revenue of $63.87 million for the quarter, compared to the consensus estimate of $62.41 million. During the same quarter last year, the business posted ($0.05) earnings per share. The business’s quarterly revenue was up 51.3% compared to the same quarter last year. As a group, sell-side analysts expect that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the sale, the director now owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 11.81% of the stock is owned by insiders.

Institutional Trading of Applied Digital

A number of large investors have recently modified their holdings of the stock. Charles Schwab Investment Management Inc. raised its position 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 purchasing an additional 240,554 shares in the last quarter. Quadrature Capital Ltd acquired a new stake in Applied Digital in the third quarter valued at approximately $545,000. Rhumbline Advisers lifted its stake in Applied Digital by 68.7% in the fourth quarter. Rhumbline Advisers now owns 258,892 shares of the company’s stock worth $1,978,000 after acquiring an additional 105,428 shares during the last quarter. Exchange Traded Concepts LLC increased its position in shares of Applied Digital by 37.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company’s stock valued at $7,656,000 after purchasing an additional 273,666 shares during the last quarter. Finally, Barclays PLC raised its holdings in shares of Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after purchasing an additional 428,428 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.