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

Applied Digital Co. (NASDAQ:APLD)’s stock price fell 4.9% on Friday . The stock traded as low as $8.01 and last traded at $8.28. 5,409,452 shares changed hands during trading, a decline of 62% from the average session volume of 14,062,823 shares. The stock had previously closed at $8.71.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on APLD shares. Roth Mkm reiterated a “buy” rating and issued a $10.00 price target on shares of Applied Digital in a research note on Thursday, October 10th. Cantor Fitzgerald assumed coverage on shares of Applied Digital in a report on Friday, December 20th. They set an “overweight” rating and a $15.00 price objective for the company. Craig Hallum increased their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Applied Digital in a report on Friday, November 1st. Finally, Lake Street Capital raised their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Seven research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $11.14.

Applied Digital Stock Performance

The business’s fifty day moving average is $8.66 and its two-hundred day moving average is $6.91. The stock has a market capitalization of $1.75 billion, a PE ratio of -7.09 and a beta of 4.78. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.13. The business had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The business’s revenue was up 67.2% on a year-over-year basis. During the same period last year, the company posted ($0.10) EPS. As a group, research analysts anticipate that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 80,000 shares of the business’s stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the completion of the transaction, the director now owns 433,686 shares in the company, valued at $3,196,265.82. The trade was a 15.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now owns 3,875,955 shares in the company, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 359,369 shares of company stock worth $3,115,161. Corporate insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently bought and sold shares of APLD. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in shares of Applied Digital in the third quarter valued at approximately $59,000. Headlands Technologies LLC lifted its holdings in shares of Applied Digital by 381.8% in the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after buying an additional 6,933 shares during the period. Beacon Harbor Wealth Advisors Inc. bought a new position in shares of Applied Digital during the 3rd quarter worth $83,000. Wealth Enhancement Advisory Services LLC purchased a new position in shares of Applied Digital during the third quarter valued at $88,000. Finally, Chesapeake Capital Corp IL bought a new stake in shares of Applied Digital in the third quarter valued at about $94,000. 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.