Applied Digital (NASDAQ:APLD) Shares Down 6.6% – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD)’s stock price was down 6.6% during mid-day trading on Friday . The company traded as low as $8.37 and last traded at $8.59. Approximately 5,052,017 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 8,645,497 shares. The stock had previously closed at $9.20.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Craig Hallum increased their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. B. Riley raised their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Friday, November 1st. Cantor Fitzgerald started coverage on shares of Applied Digital in a research note on Friday, December 20th. They issued an “overweight” rating and a $15.00 price objective for the company. Finally, HC Wainwright raised 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. Seven research analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital has an average rating of “Buy” and an average price target of $11.14.

Applied Digital Stock Performance

The firm has a market cap of $1.77 billion, a price-to-earnings ratio of -7.17 and a beta of 4.67. The firm’s 50 day moving average price is $8.55 and its 200-day moving average price is $6.68. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.13. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The company had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same period last year, the business posted ($0.10) EPS. The business’s quarterly revenue was up 67.2% on a year-over-year basis. On average, analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 80,000 shares of the firm’s stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $7.37, for a total transaction of $589,600.00. Following the completion of the transaction, the director now directly owns 433,686 shares of the company’s stock, valued at approximately $3,196,265.82. This trade represents a 15.57 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares in the company, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 359,369 shares of company stock valued at $3,115,161 in the last quarter. Corporate insiders own 11.81% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Large investors have recently modified their holdings of the stock. Bank of New York Mellon Corp boosted its stake in Applied Digital by 36.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock valued at $1,814,000 after buying an additional 80,958 shares in the last quarter. Commonwealth Equity Services LLC boosted its stake in shares of Applied Digital by 115.7% in the 2nd quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company’s stock valued at $397,000 after purchasing an additional 35,768 shares in the last quarter. Van ECK Associates Corp grew its holdings in shares of Applied Digital by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock worth $17,077,000 after purchasing an additional 443,699 shares during the last quarter. Rhumbline Advisers increased its position in shares of Applied Digital by 30.0% during the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock worth $834,000 after purchasing an additional 32,336 shares in the last quarter. Finally, Crumly & Associates Inc. bought a new position in Applied Digital during the 2nd quarter valued at about $110,000. 65.67% of the stock is currently owned by institutional investors.

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.