Applied Digital (NASDAQ:APLD) Trading Down 15.2% - Here's Why

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) traded down 15.2% during trading on Tuesday . The stock traded as low as $7.41 and last traded at $7.65. 18,500,514 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 26,312,631 shares. The stock had previously closed at $9.02.

Analysts Set New Price Targets

APLD has been the subject of several analyst reports. Northland Securities lifted 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. Cantor Fitzgerald dropped their price target on shares of Applied Digital from $15.00 to $14.00 and set an "overweight" rating for the company in a research report on Wednesday, January 15th. HC Wainwright raised their price objective on Applied Digital from $10.00 to $12.00 and gave the stock a "buy" rating in a research note on Wednesday, January 15th. Needham & Company LLC reaffirmed a "buy" rating and issued a $11.00 price objective on shares of Applied Digital in a report on Monday. Finally, Compass Point assumed coverage on Applied Digital in a report on Tuesday, January 28th. They set a "buy" rating and a $10.00 target price on the stock. Nine investment analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $12.11.

Applied Digital Stock Performance

The stock has a fifty day simple moving average of $8.41 and a two-hundred day simple moving average of $7.62. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The stock has a market cap of $1.78 billion, a price-to-earnings ratio of -4.62 and a beta of 4.78.

Remove Ads

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.08. The business had revenue of $63.87 million for the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. Applied Digital's revenue was up 51.3% compared to the same quarter last year. During the same period last year, the firm posted ($0.05) earnings per share. Analysts expect that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction that occurred on 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 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 document filed with the Securities & Exchange Commission, which is available at this link. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB boosted 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 valued at $31,000 after acquiring an additional 2,000 shares in the last quarter. R Squared Ltd bought a new position in Applied Digital in the fourth quarter valued at about $36,000. US Bancorp DE acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $37,000. Jones Financial Companies Lllp bought a new stake in shares of Applied Digital during the fourth quarter worth about $39,000. Finally, Spire Wealth Management acquired a new position in shares of Applied Digital in the fourth quarter valued at approximately $43,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.