Applied Digital (NASDAQ:APLD) Shares Down 4.1% – Here’s Why

Applied Digital Co. (NASDAQ:APLD)’s share price dropped 4.1% during mid-day trading on Tuesday . The company traded as low as $7.00 and last traded at $7.04. Approximately 3,700,619 shares changed hands during trading, a decline of 86% from the average daily volume of 26,772,354 shares. The stock had previously closed at $7.34.

Analyst Ratings Changes

A number of brokerages recently issued reports on APLD. Northland Securities boosted their price objective on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a research note on Tuesday, February 4th. Cantor Fitzgerald cut their price objective on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday, January 15th. HC Wainwright boosted their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, January 15th. Compass Point began coverage on Applied Digital in a research note on Tuesday, January 28th. They set a “buy” rating and a $10.00 price objective for the company. Finally, Needham & Company LLC reiterated a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research note on Monday, February 24th. Nine research analysts have rated the stock with a buy rating, According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $12.11.

Applied Digital Stock Down 0.5 %

The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $1.63 billion, a P/E ratio of -4.22 and a beta of 4.69. The company has a 50 day simple moving average of $8.06 and a two-hundred day simple moving average of $7.87.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The business had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same period in the prior year, the company posted ($0.05) EPS. The firm’s revenue for the quarter was up 51.3% compared to the same quarter last year. On average, equities analysts predict that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the sale, the director now directly owns 342,923 shares of the company’s stock, valued at $3,034,868.55. This represents a 5.51 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Several hedge funds have recently modified their holdings of APLD. Wilmington Savings Fund Society FSB raised its holdings in shares of Applied Digital by 100.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after acquiring an additional 2,000 shares in the last quarter. R Squared Ltd purchased a new stake in Applied Digital during the 4th quarter valued at $36,000. US Bancorp DE purchased a new stake in Applied Digital during the 4th quarter valued at $37,000. Jones Financial Companies Lllp purchased a new stake in Applied Digital during the 4th quarter valued at $39,000. Finally, Spire Wealth Management purchased a new stake in Applied Digital during the 4th quarter valued at $43,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

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.