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

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares dropped 3% 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. Approximately 16,873,491 shares traded hands during trading, a decline of 21% from the average daily volume of 21,458,602 shares. The stock had previously closed at $8.54.

Several other equities analysts also recently commented on the stock. Needham & Company LLC reiterated a "buy" rating and set a $11.00 price target on shares of Applied Digital in a report on Wednesday. Craig Hallum increased 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. 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. Lake Street Capital increased their target price on Applied Digital from $7.00 to $11.00 and gave the stock a "buy" rating in a research note on Thursday, October 10th. Finally, HC Wainwright lifted their target price on Applied Digital from $5.00 to $10.00 and gave the stock a "buy" rating in a research report on Wednesday, October 16th. Seven equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, Applied Digital has a consensus rating of "Buy" and a consensus price target of $11.29.

Insiders Place Their Bets

In related news, Director Douglas S. Miller sold 10,000 shares of the company'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 directly owns 208,506 shares in the company, valued at $1,670,133.06. This represents a 4.58 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Richard N. Nottenburg sold 19,369 shares of Applied Digital stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $7.51, for a total value of $145,461.19. Following the completion of the transaction, the director now owns 384,317 shares in the company, valued at $2,886,220.67. This trade represents a 4.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 279,369 shares of company stock worth $2,525,561 in the last three months. Corporate insiders own 11.81% of the company's stock.

Institutional Trading of Applied Digital

Hedge funds have recently modified their holdings of the company. SeaCrest Wealth Management LLC purchased a new position in shares of Applied Digital in the 4th quarter worth approximately $586,000. Gunderson Capital Management Inc. purchased a new position in Applied Digital in the fourth quarter worth $83,000. JPMorgan Chase & Co. increased its position in shares of Applied Digital by 18.4% during the third quarter. JPMorgan Chase & Co. now owns 56,355 shares of the company's stock worth $465,000 after purchasing an additional 8,774 shares in the last quarter. Tidal Investments LLC purchased a new stake in shares of Applied Digital during the 3rd quarter valued at $95,000. Finally, Virtu Financial LLC acquired a new stake in shares of Applied Digital in the 3rd quarter worth $2,030,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Trading Down 2.0 %

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a market capitalization of $1.77 billion, a PE ratio of -7.15 and a beta of 4.78. The company has a 50 day moving average of $8.74 and a two-hundred day moving average of $6.94.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping analysts' consensus estimates of ($0.14) by $0.08. The company had revenue of $63.87 million during the quarter, compared to analysts' expectations of $62.41 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The firm's revenue was up 51.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.05) EPS. Sell-side analysts predict that Applied Digital Co. will post -0.4 EPS for the current 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.