Applied Digital (NASDAQ:APLD) Stock Price Down 17.5% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s stock price traded down 17.5% during mid-day trading on Monday . The company traded as low as $22.90 and last traded at $22.98. 42,995,249 shares were traded during mid-day trading, an increase of 22% from the average session volume of 35,180,074 shares. The stock had previously closed at $27.86.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a report on Thursday, October 9th. HC Wainwright raised their price objective on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a report on Friday, October 10th. B. Riley reaffirmed a “buy” rating on shares of Applied Digital in a research note on Wednesday, October 22nd. Northland Securities boosted their price target on shares of Applied Digital to $40.00 and gave the stock an “outperform” rating in a report on Friday, October 10th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Applied Digital has a consensus rating of “Moderate Buy” and an average price target of $26.20.

Applied Digital Trading Down 17.5%

The stock has a market capitalization of $6.42 billion, a PE ratio of -20.34 and a beta of 6.95. The company’s 50 day moving average price is $29.84 and its two-hundred day moving average price is $19.68. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. The company had revenue of $64.22 million during the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. Applied Digital’s quarterly revenue was up 84.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.15) EPS. As a group, analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $33.20, for a total value of $803,871.60. Following the completion of the sale, the director owned 59,400 shares of the company’s stock, valued at approximately $1,972,080. This represents a 28.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Chuck Hastings sold 25,000 shares of the stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $34.27, for a total value of $856,750.00. Following the completion of the transaction, the director owned 426,612 shares of the company’s stock, valued at $14,619,993.24. The trade was a 5.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 328,035 shares of company stock worth $11,376,479. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Hood River Capital Management LLC lifted its stake in Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock worth $220,120,000 after purchasing an additional 592,314 shares in the last quarter. Vanguard Group Inc. grew its position in Applied Digital by 23.2% in the 3rd quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock valued at $406,547,000 after acquiring an additional 3,339,062 shares in the last quarter. Situational Awareness LP increased its stake in Applied Digital by 63.3% during the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after purchasing an additional 2,556,200 shares during the period. BNP Paribas Financial Markets lifted its position in shares of Applied Digital by 24,356.8% during the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after purchasing an additional 5,198,223 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Applied Digital by 20.2% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company’s stock worth $73,388,000 after purchasing an additional 537,839 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

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.