Applied Digital (NASDAQ:APLD) Trading Down 6.5% - Here's Why

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares were down 6.5% during mid-day trading on Monday . The company traded as low as $7.44 and last traded at $7.48. Approximately 14,702,552 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 28,286,107 shares. The stock had previously closed at $8.00.

Wall Street Analyst Weigh In

Several brokerages recently commented on APLD. Cantor Fitzgerald decreased their price target on Applied Digital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research note on Wednesday, January 15th. Northland Securities lifted their price objective on Applied Digital from $12.00 to $20.00 and gave the company an "outperform" rating in a report on Tuesday, February 4th. Compass Point began coverage on shares of Applied Digital in a report on Tuesday, January 28th. They issued a "buy" rating and a $10.00 target price on the stock. HC Wainwright lifted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a report on Wednesday, January 15th. Finally, Needham & Company LLC restated a "buy" rating and issued a $11.00 price target on shares of Applied Digital in a research report on Monday, February 24th. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital currently has an average rating of "Buy" and an average target price of $12.11.

Applied Digital Stock Up 3.7 %

The stock has a market cap of $1.62 billion, a price-to-earnings ratio of -4.20 and a beta of 4.69. 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 firm's 50-day simple moving average is $8.26 and its two-hundred day simple moving average is $7.73.

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

Insider Activity

In related news, Director Richard N. Nottenburg sold 20,000 shares of the business's stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the sale, the director now directly owns 342,923 shares of the company's stock, valued at $3,034,868.55. The trade was a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 11.81% of the stock is currently owned by insiders.

Institutional Trading of Applied Digital

A number of institutional investors have recently bought and sold shares of APLD. Hood River Capital Management LLC boosted its position in shares of Applied Digital by 10.7% in the 4th quarter. Hood River Capital Management LLC now owns 15,147,422 shares of the company's stock worth $115,726,000 after purchasing an additional 1,464,854 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Applied Digital by 39.1% during the fourth quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock worth $97,487,000 after buying an additional 3,587,619 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Applied Digital by 54.4% during the 4th quarter. Geode Capital Management LLC now owns 4,726,495 shares of the company's stock worth $36,117,000 after buying an additional 1,665,335 shares during the period. Van ECK Associates Corp grew its position in shares of Applied Digital by 113.8% during the 4th quarter. Van ECK Associates Corp now owns 4,404,313 shares of the company's stock worth $33,649,000 after buying an additional 2,344,572 shares during the period. Finally, Pertento Partners LLP increased its stake in shares of Applied Digital by 49.0% in the 4th quarter. Pertento Partners LLP now owns 2,528,717 shares of the company's stock valued at $19,319,000 after acquiring an additional 831,705 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company's stock.

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.