Applied Digital (NASDAQ:APLD) Shares Down 3% After Analyst Downgrade

Applied Digital Co. (NASDAQ:APLD - Get Free Report) traded down 3% during trading on Wednesday after Cantor Fitzgerald lowered their price target on the stock from $15.00 to $14.00. Cantor Fitzgerald currently has an overweight rating on the stock. Applied Digital traded as low as $8.11 and last traded at $8.28. 16,873,491 shares changed hands during trading, a decline of 21% from the average session volume of 21,458,602 shares. The stock had previously closed at $8.54.

A number of other brokerages have also recently issued reports on APLD. Roth Mkm restated a "buy" rating and set a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. Craig Hallum lifted their price target on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Thursday, October 10th. HC Wainwright upped their price objective on 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 reissued a "buy" rating and set a $11.00 target price on shares of Applied Digital in a report on Wednesday. Finally, Lake Street Capital upped their price target on shares of Applied Digital from $7.00 to $11.00 and gave the company a "buy" rating in a research note on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital currently has an average rating of "Buy" and a consensus price target of $11.29.

Insiders Place Their Bets

In other news, CEO Wes Cummins sold 200,000 shares of the company's stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the sale, the chief executive officer now owns 3,875,955 shares of the company's stock, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 19,369 shares of Applied Digital stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $7.51, for a total transaction of $145,461.19. Following the completion of the transaction, the director now directly owns 384,317 shares in the company, valued at $2,886,220.67. This trade represents a 4.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 269,369 shares of company stock worth $2,445,461 in the last 90 days. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of large investors have recently modified their holdings of the business. Bank of New York Mellon Corp boosted its stake in Applied Digital by 36.2% in the second quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company's stock valued at $1,814,000 after buying an additional 80,958 shares in the last quarter. Commonwealth Equity Services LLC increased its position in Applied Digital by 115.7% during the 2nd quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company's stock worth $397,000 after purchasing an additional 35,768 shares in the last quarter. Rhumbline Advisers lifted its stake in Applied Digital by 30.0% in the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company's stock valued at $834,000 after purchasing an additional 32,336 shares during the last quarter. L & S Advisors Inc acquired a new stake in Applied Digital in the second quarter valued at approximately $122,000. Finally, Thomist Capital Management LP bought a new stake in shares of Applied Digital during the second quarter worth $2,529,000. Institutional investors and hedge funds own 65.67% of the company's stock.

Applied Digital Stock Up 7.3 %

The company has a market capitalization of $1.90 billion, a price-to-earnings ratio of -7.68 and a beta of 4.78. 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 firm's fifty day moving average price is $8.79 and its 200-day moving average price is $6.96.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted 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 firm had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business's quarterly revenue was up 51.3% on a year-over-year basis. During the same period last year, the company earned ($0.05) earnings per share. Sell-side analysts expect that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

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.