Applied Digital (NASDAQ:APLD) Trading Down 4.1% – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD) shares were down 4.1% during trading on Wednesday . The stock traded as low as $7.50 and last traded at $7.64. Approximately 10,571,872 shares traded hands during mid-day trading, an increase of 21% from the average daily volume of 8,718,619 shares. The stock had previously closed at $7.97.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Cantor Fitzgerald assumed coverage on Applied Digital in a report on Friday, December 20th. They set an “overweight” rating and a $15.00 price objective on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Friday, November 1st. Lake Street Capital boosted their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. B. Riley increased their target price on shares of Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a report on Friday, September 13th. Finally, Roth Mkm reaffirmed a “buy” rating and set a $10.00 price target on shares of Applied Digital in a research note on Thursday, October 10th. Seven analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus target price of $11.14.

Applied Digital Trading Up 2.1 %

The firm has a market cap of $1.65 billion, a price-to-earnings ratio of -6.67 and a beta of 4.67. The business has a 50 day moving average of $8.48 and a 200 day moving average of $6.76. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62.

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

Insider Buying and Selling at Applied Digital

In related news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction that occurred on 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 transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. This represents a 4.91 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of the stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the transaction, the director now directly owns 433,686 shares in the company, valued at approximately $3,196,265.82. This represents a 15.57 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 359,369 shares of company stock worth $3,115,161. Insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Institutional investors and hedge funds have recently made changes to their positions in the company. Headlands Technologies LLC increased its position in Applied Digital by 381.8% during the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after purchasing an additional 6,933 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in Applied Digital during the 3rd quarter worth $59,000. Beacon Harbor Wealth Advisors Inc. purchased a new stake in Applied Digital during the 3rd quarter worth $83,000. Wealth Enhancement Advisory Services LLC purchased a new position in Applied Digital in the third quarter valued at about $88,000. Finally, Chesapeake Capital Corp IL acquired a new position in shares of Applied Digital during the third quarter worth about $94,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.