Applied Digital (NASDAQ:APLD) Stock Price Down 8.4% – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD)’s stock price traded down 8.4% during trading on Wednesday . The stock traded as low as $8.47 and last traded at $8.63. 6,398,726 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 14,245,130 shares. The stock had previously closed at $9.42.

Analyst Ratings Changes

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

Applied Digital Stock Performance

The company has a market capitalization of $1.75 billion, a price-to-earnings ratio of -7.09 and a beta of 4.78. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The firm’s 50 day simple moving average is $8.66 and its 200-day simple moving average is $6.90.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data 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. The firm had revenue of $60.70 million during the quarter, compared to analysts’ expectations of $54.85 million. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. Applied Digital’s revenue for the quarter was up 67.2% on a year-over-year basis. During the same period in the prior year, the company posted ($0.10) earnings per share. Analysts expect that Applied Digital Co. will post -0.4 EPS for the current year.

Insiders Place Their Bets

In related news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Thursday, October 17th. The stock was sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the transaction, the director now directly owns 208,506 shares of the company’s stock, valued at $1,670,133.06. The trade was a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Wes Cummins sold 200,000 shares of the company’s 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 transaction, the chief executive officer now owns 3,875,955 shares in the company, valued at $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 359,369 shares of company stock worth $3,115,161 over the last 90 days. Corporate insiders own 11.81% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently modified their holdings of the business. Geode Capital Management LLC grew its holdings in Applied Digital by 48.7% during the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after acquiring an additional 1,002,862 shares during the period. Hood River Capital Management LLC boosted its position in shares of Applied Digital by 8.7% in the 2nd quarter. Hood River Capital Management LLC now owns 9,596,231 shares of the company’s stock worth $57,098,000 after purchasing an additional 771,699 shares during the last quarter. Alight Capital Management LP acquired a new stake in shares of Applied Digital during the second quarter worth $3,570,000. Barclays PLC increased its holdings in Applied Digital by 736.8% in the third 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. Finally, Thomist Capital Management LP acquired a new position in Applied Digital in the second quarter valued at about $2,529,000. 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.