Applied Digital (NASDAQ:APLD) Trading Down 4.9% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) was down 4.9% on Wednesday . The company traded as low as $7.18 and last traded at $7.22. Approximately 7,045,957 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 30,394,775 shares. The stock had previously closed at $7.59.

Analysts Set New Price Targets

Several analysts have weighed in on APLD shares. Citizens Jmp raised shares of Applied Digital to a “strong-buy” rating and set a $12.00 price objective on the stock in a research note on Thursday, May 22nd. HC Wainwright reduced their target price on shares of Applied Digital from $12.00 to $7.00 and set a “buy” rating on the stock in a research report on Tuesday, April 15th. Cantor Fitzgerald reduced their target price on shares of Applied Digital from $14.00 to $7.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 15th. Northland Securities upped their target price on shares of Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 4th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Wednesday, April 23rd. Ten equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $10.91.

Applied Digital Stock Performance

The company’s fifty day moving average price is $5.56 and its 200 day moving average price is $7.40. The company has a market cap of $1.53 billion, a PE ratio of -3.94 and a beta of 5.98. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Monday, April 14th. The company reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.05). The business had revenue of $52.92 million for the quarter, compared to the consensus estimate of $62.91 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. During the same quarter in the prior year, the business earned ($0.24) EPS. On average, equities research analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Rachel H. Lee sold 24,212 shares of the stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total transaction of $169,484.00. Following the completion of the transaction, the director now directly owns 83,613 shares in the company, valued at approximately $585,291. This represents a 22.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Hood River Capital Management LLC boosted its position in shares of Applied Digital by 10.7% during the 4th quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company’s stock valued at $115,726,000 after acquiring an additional 1,464,854 shares during the last quarter. Vanguard Group Inc. raised its holdings in Applied Digital by 5.7% during the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company’s stock valued at $75,819,000 after buying an additional 730,978 shares during the period. Geode Capital Management LLC raised its holdings in Applied Digital by 54.4% during the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company’s stock valued at $36,117,000 after buying an additional 1,665,335 shares during the period. Van ECK Associates Corp raised its holdings in Applied Digital by 113.8% during the 4th quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company’s stock valued at $33,649,000 after buying an additional 2,344,572 shares during the period. Finally, Situational Awareness LP purchased a new stake in Applied Digital in the first quarter worth $22,680,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

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.