Applied Digital (NASDAQ:APLD) Shares Down 6.3% After Earnings Miss

Applied Digital Co. (NASDAQ:APLD) fell 6.3% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $4.41 and last traded at $4.43. 845,305 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 4,310,902 shares. The stock had previously closed at $4.73.

The company reported ($0.52) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.29). The business had revenue of $43.70 million during the quarter, compared to the consensus estimate of $42.70 million. Applied Digital had a negative net margin of 61.84% and a negative return on equity of 75.46%. During the same period in the prior year, the firm earned ($0.07) EPS.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on APLD. Needham & Company LLC reissued a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research note on Thursday. B. Riley raised their price objective on shares of Applied Digital from $6.00 to $8.00 and gave the stock a “buy” rating in a report on Friday, June 28th. Roth Mkm cut their target price on shares of Applied Digital from $11.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday. Finally, HC Wainwright restated a “buy” rating and issued a $5.00 price objective on shares of Applied Digital in a research report on Thursday. Five investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $8.20.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Headlands Technologies LLC grew its stake in shares of Applied Digital by 381.8% during the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after acquiring an additional 6,933 shares during the period. ARS Investment Partners LLC bought a new stake in shares of Applied Digital during the second quarter worth $60,000. Capstone Investment Advisors LLC bought a new stake in shares of Applied Digital during the fourth quarter worth $78,000. Principal Financial Group Inc. bought a new stake in shares of Applied Digital in the first quarter valued at about $50,000. Finally, ICA Group Wealth Management LLC bought a new stake in shares of Applied Digital in the fourth quarter valued at about $81,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital Price Performance

The firm has a fifty day moving average of $5.11 and a two-hundred day moving average of $4.36. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.30 and a quick ratio of 0.30. The stock has a market capitalization of $488.46 million, a P/E ratio of -4.56 and a beta of 4.56.

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.