Applied Digital (NASDAQ:APLD) Stock Price Down 12.7% – What’s Next?

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 12.7% during trading on Thursday . The stock traded as low as $22.98 and last traded at $23.06. 30,823,929 shares were traded during trading, a decline of 14% from the average session volume of 35,930,422 shares. The stock had previously closed at $26.41.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on APLD. Citigroup restated an “outperform” rating on shares of Applied Digital in a research report on Thursday, October 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. HC Wainwright boosted their price target on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a report on Sunday, October 19th. Finally, Craig Hallum lifted their target price on Applied Digital to $39.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, Applied Digital has a consensus rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Trading Up 2.6%

The business has a 50-day moving average price of $27.50 and a two-hundred day moving average price of $16.68. The stock has a market capitalization of $6.73 billion, a P/E ratio of -20.93 and a beta of 6.77. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29.

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

Insider Transactions at Applied Digital

In related news, CEO Wes Cummins sold 400,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $6,104,000.00. Following the completion of the transaction, the chief executive officer directly owned 2,659,379 shares in the company, valued at $40,582,123.54. This represents a 13.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard N. Nottenburg sold 34,375 shares of the stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.23, for a total transaction of $1,142,281.25. Following the completion of the transaction, the director directly owned 263,612 shares of the company’s stock, valued at approximately $8,759,826.76. The trade was a 11.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 823,035 shares of company stock valued at $18,930,179. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. Schonfeld Strategic Advisors LLC bought a new position in shares of Applied Digital in the 3rd quarter valued at $2,123,000. Creative Planning increased its holdings in Applied Digital by 33.0% in the 3rd quarter. Creative Planning now owns 69,278 shares of the company’s stock worth $1,589,000 after purchasing an additional 17,175 shares in the last quarter. Raymond James Financial Inc. raised its position in Applied Digital by 70.7% in the third quarter. Raymond James Financial Inc. now owns 322,317 shares of the company’s stock valued at $7,394,000 after purchasing an additional 133,522 shares during the last quarter. Virtu Financial LLC acquired a new stake in shares of Applied Digital during the third quarter valued at about $3,189,000. Finally, Amundi bought a new stake in shares of Applied Digital during the third quarter worth about $166,000. 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.