Applied Digital (NASDAQ:APLD) Stock Price Down 3.3% – Here’s What Happened

Shares of Applied Digital Co. (NASDAQ:APLD) dropped 3.3% during mid-day trading on Tuesday . The company traded as low as $7.68 and last traded at $7.71. Approximately 3,378,580 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 8,688,786 shares. The stock had previously closed at $7.97.

Wall Street Analyst Weigh In

APLD has been the topic of a number of research analyst reports. Cantor Fitzgerald initiated coverage on shares of Applied Digital in a report on Friday, December 20th. They issued an “overweight” rating and a $15.00 target price on the stock. Roth Mkm reaffirmed a “buy” rating and issued a $10.00 target price on shares of Applied Digital in a report on Thursday, October 10th. Lake Street Capital upped their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 target price on shares of Applied Digital in a report on Friday, November 1st. Finally, B. Riley upped their price target on shares of Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Seven analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital has a consensus rating of “Buy” and an average target price of $11.14.

Applied Digital Stock Performance

The stock’s 50 day moving average is $8.48 and its 200 day moving average is $6.75. The firm has a market cap of $1.61 billion, a price-to-earnings ratio of -6.53 and a beta of 4.67. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same quarter in the prior year, the business posted ($0.10) EPS. The business’s revenue was up 67.2% compared to the same quarter last year. Analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Richard N. Nottenburg sold 80,000 shares of the stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $7.37, for a total transaction of $589,600.00. Following the sale, the director now owns 433,686 shares in the company, 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 SEC, which is accessible through this link. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the sale, the chief executive officer now owns 3,875,955 shares in the company, valued at $35,658,786. This 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 worth $3,115,161 in the last quarter. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Large investors have recently made changes to their positions in the company. Charles Schwab Investment Management Inc. boosted its position in shares of Applied Digital by 36.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after acquiring an additional 240,554 shares in the last quarter. Quadrature Capital Ltd bought a new position in Applied Digital in the 3rd quarter valued at approximately $545,000. Barclays PLC lifted its stake in 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 purchasing an additional 428,428 shares during the last quarter. Virtu Financial LLC bought a new position in Applied Digital in the 3rd quarter valued at approximately $2,030,000. Finally, B. Riley Wealth Advisors Inc. lifted its stake in Applied Digital by 66.1% in the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock valued at $4,609,000 after purchasing an additional 308,223 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.