Applied Digital (NASDAQ:APLD) Shares Down 3.8% – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD)’s share price fell 3.8% during trading on Thursday . The stock traded as low as $8.21 and last traded at $8.43. 5,107,536 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 8,453,530 shares. The stock had previously closed at $8.76.

Analyst Upgrades and Downgrades

APLD has been the topic of a number of research analyst reports. Craig Hallum raised their price target on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Lake Street Capital raised their target price on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. HC Wainwright boosted their target price on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a report on Wednesday, October 16th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research note on Friday, November 1st. Finally, Roth Mkm reissued a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. Six 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 an average price target of $10.50.

Applied Digital Stock Down 9.5 %

The firm’s 50-day moving average price is $8.43 and its 200-day moving average price is $6.48. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The company has a market cap of $1.68 billion, a price-to-earnings ratio of -6.78 and a beta of 4.67.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The company had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. During the same quarter in the prior year, the business earned ($0.10) earnings per share. The company’s revenue was up 67.2% compared to the same quarter last year. Sell-side analysts forecast that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 17th. The stock was sold at an average price of $8.01, for a total value of $80,100.00. Following the sale, the director now owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. This trade represents a 4.58 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction 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 transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, 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. In the last ninety days, insiders have sold 359,369 shares of company stock valued at $3,115,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently added to or reduced their stakes in the stock. Headlands Technologies LLC increased 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 acquiring an additional 6,933 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in Applied Digital in the 3rd quarter worth about $59,000. Beacon Harbor Wealth Advisors Inc. acquired a new stake in shares of Applied Digital in the third quarter valued at approximately $83,000. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Applied Digital during the third quarter valued at approximately $88,000. Finally, Chesapeake Capital Corp IL acquired a new position in shares of Applied Digital during the third quarter worth approximately $94,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

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.