Applied Digital (NASDAQ:APLD) Shares Gap Down on Disappointing Earnings

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $5.37, but opened at $4.60. Applied Digital shares last traded at $4.45, with a volume of 9,703,670 shares trading hands.

The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.05). The company had revenue of $52.92 million during the quarter, compared to the consensus estimate of $62.91 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. During the same quarter in the prior year, the firm posted ($0.24) earnings per share.

Wall Street Analyst Weigh In

Several research analysts recently commented on APLD shares. Cantor Fitzgerald dropped their price target on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday. Compass Point started coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They set a "buy" rating and a $10.00 target price on the stock. Northland Securities upped their price objective on shares of Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 4th. Needham & Company LLC dropped their target price on Applied Digital from $11.00 to $10.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, HC Wainwright decreased their target price on shares of Applied Digital from $12.00 to $7.00 and set a "buy" rating for the company in a research report on Tuesday. Nine analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $10.67.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in shares of Applied Digital by 39.1% in the fourth quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock worth $97,487,000 after acquiring an additional 3,587,619 shares during the period. Rhumbline Advisers grew its stake in Applied Digital by 68.7% in the 4th quarter. Rhumbline Advisers now owns 258,892 shares of the company's stock valued at $1,978,000 after acquiring an additional 105,428 shares during the period. Exchange Traded Concepts LLC boosted its holdings in shares of Applied Digital by 37.6% during the 4th quarter. Exchange Traded Concepts LLC now owns 1,002,090 shares of the company's stock worth $7,656,000 after purchasing an additional 273,666 shares during the last quarter. Barclays PLC increased its holdings in shares of Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company's stock valued at $4,014,000 after purchasing an additional 428,428 shares during the last quarter. Finally, Highbridge Capital Management LLC purchased a new position in Applied Digital during the fourth quarter worth approximately $2,546,000. 65.67% of the stock is owned by institutional investors and hedge funds.

Applied Digital Trading Down 3.4 %

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 company has a fifty day simple moving average of $6.78 and a 200-day simple moving average of $7.78. The company has a market capitalization of $885.39 million, a PE ratio of -2.28 and a beta of 5.18.

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.