Applied Digital (NASDAQ:APLD) Shares Down 6.3% After Earnings Miss

Applied Digital Co. (NASDAQ:APLD)’s share price was down 6.3% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $4.41 and last traded at $4.43. Approximately 845,305 shares changed hands during trading, a decline of 80% from the average daily volume of 4,310,902 shares. The stock had previously closed at $4.73.

The company reported ($0.52) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.29). The company had revenue of $43.70 million during the quarter, compared to analysts’ expectations of $42.70 million. Applied Digital had a negative net margin of 61.84% and a negative return on equity of 75.46%. During the same quarter last year, the firm posted ($0.07) earnings per share.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. HC Wainwright reissued a “buy” rating and issued a $5.00 price target on shares of Applied Digital in a report on Thursday. Roth Mkm decreased their price target on shares of Applied Digital from $11.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday. B. Riley lifted their price target on Applied Digital from $6.00 to $8.00 and gave the company a “buy” rating in a research report on Friday, June 28th. Finally, Needham & Company LLC restated a “buy” rating and issued a $11.00 price objective on shares of Applied Digital in a research report on Thursday. Five 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 target price of $8.20.

Institutional Trading of Applied Digital

Hedge funds have recently bought and sold shares of the company. Point72 Asset Management L.P. bought a new stake in Applied Digital in the second quarter worth $1,451,000. B. Riley Wealth Advisors Inc. grew its stake in shares of Applied Digital by 66.1% during the second quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock valued at $4,609,000 after buying an additional 308,223 shares during the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Applied Digital by 25.0% in the second quarter. The Manufacturers Life Insurance Company now owns 37,641 shares of the company’s stock worth $224,000 after buying an additional 7,517 shares during the period. Alight Capital Management LP bought a new stake in shares of Applied Digital in the 2nd quarter valued at about $3,570,000. Finally, Marshall Wace LLP purchased a new stake in Applied Digital during the 2nd quarter valued at about $720,000. Institutional investors own 65.67% of the company’s stock.

Applied Digital Trading Down 3.7 %

The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.30 and a current ratio of 0.30. The firm has a 50-day moving average of $5.11 and a 200-day moving average of $4.36. The firm has a market capitalization of $504.93 million, a P/E ratio of -4.84 and a beta of 4.56.

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.