Applied Digital (NASDAQ:APLD) Shares Down 7.2% – Here’s Why

Shares of Applied Digital Co. (NASDAQ:APLD) fell 7.2% on Friday . The company traded as low as $5.55 and last traded at $5.66. 10,584,400 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 26,285,844 shares. The stock had previously closed at $6.10.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on APLD shares. Compass Point assumed coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price objective on the stock. Northland Securities boosted their price objective on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 4th. HC Wainwright raised their target price on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Cantor Fitzgerald reduced their price target on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Wednesday, January 15th. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Applied Digital in a report on Monday, February 24th. Nine analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $12.11.

Applied Digital Trading Down 6.2 %

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm’s 50-day simple moving average is $7.76 and its 200 day simple moving average is $8.00. The stock has a market capitalization of $1.28 billion, a P/E ratio of -3.31 and a beta of 4.69.

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

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the completion of the transaction, the director now directly owns 342,923 shares in the company, valued at $3,034,868.55. This trade represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wilmington Savings Fund Society FSB boosted its stake 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 valued at $31,000 after buying an additional 2,000 shares during the period. R Squared Ltd purchased a new stake in shares of Applied Digital during the fourth quarter worth $36,000. US Bancorp DE acquired a new stake in Applied Digital during the fourth quarter valued at $37,000. Jones Financial Companies Lllp purchased a new position in Applied Digital in the fourth quarter valued at about $39,000. Finally, Spire Wealth Management acquired a new position in Applied Digital in the 4th quarter worth about $43,000. Institutional investors and hedge funds 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.