Applied Digital (NASDAQ:APLD) Shares Down 3.8% - Here's What Happened

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) dropped 3.8% during mid-day trading on Thursday . The company traded as low as $8.21 and last traded at $8.43. Approximately 5,107,536 shares traded hands during trading, a decline of 40% from the average daily volume of 8,453,530 shares. The stock had previously closed at $8.76.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Lake Street Capital upped their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the company a "buy" rating in a research report on Thursday, October 10th. Craig Hallum raised their price objective on shares of 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 target price on shares of Applied Digital from $5.00 to $10.00 and gave the company a "buy" rating in a research note on Wednesday, October 16th. B. Riley raised their price target on shares of Applied Digital from $8.00 to $9.00 and gave the stock a "buy" rating in a research note on Friday, September 13th. Finally, Roth Mkm reiterated a "buy" rating and issued a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. Six equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average price target of $10.50.

Applied Digital Price Performance

The company's 50 day simple moving average is $8.43 and its two-hundred day simple moving average 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 stock has a market capitalization of $1.70 billion, a P/E ratio of -6.88 and a beta of 4.67.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.28) by $0.13. The firm had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business's revenue for the quarter was up 67.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.10) EPS. As a group, equities analysts expect that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction on Thursday, October 17th. The stock was sold at an average price of $8.01, for a total transaction of $80,100.00. Following the completion of the sale, the director now owns 208,506 shares in the company, valued at $1,670,133.06. The trade was a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Wes Cummins sold 200,000 shares of the company's stock in a transaction on Wednesday, November 27th. The shares were 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 directly owns 3,875,955 shares in the company, valued at $35,658,786. This trade represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 359,369 shares of company stock valued at $3,115,161 in the last 90 days. 11.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently bought and sold shares of APLD. Geode Capital Management LLC lifted its stake in shares of Applied Digital by 48.7% in the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company's stock valued at $25,258,000 after purchasing an additional 1,002,862 shares during the period. Hood River Capital Management LLC lifted its stake in Applied Digital by 8.7% in the second quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company's stock valued at $57,098,000 after buying an additional 771,699 shares during the period. Alight Capital Management LP bought a new position in Applied Digital during the second quarter worth about $3,570,000. Van ECK Associates Corp grew its position in shares of Applied Digital by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company's stock worth $17,077,000 after buying an additional 443,699 shares during the period. Finally, Barclays PLC increased its stake in shares of Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company's stock valued at $4,014,000 after acquiring an additional 428,428 shares during the last quarter. 65.67% of the stock is owned by institutional investors.

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.