Applied Digital (NASDAQ:APLD) Shares Gap Down – What’s Next?

Applied Digital Co. (NASDAQ:APLD) gapped down prior to trading on Thursday . The stock had previously closed at $7.69, but opened at $7.29. Applied Digital shares last traded at $7.16, with a volume of 2,649,227 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on APLD. Cantor Fitzgerald cut their price objective on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Wednesday, January 15th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a report on Monday, February 24th. Northland Securities increased their price target on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a research report on Tuesday, February 4th. HC Wainwright upped their price objective on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, January 15th. Finally, Compass Point started coverage on shares of Applied Digital in a report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 target price for the company. Nine research analysts have rated the stock with a buy rating, According to MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $12.11.

Applied Digital Price Performance

The stock has a market capitalization of $1.60 billion, a PE ratio of -4.15 and a beta of 4.69. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock’s 50-day moving average is $8.33 and its 200 day moving average is $7.71.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The business had revenue of $63.87 million for the quarter, compared to the consensus estimate of $62.41 million. During the same period in the prior year, the business posted ($0.05) earnings per share. Applied Digital’s revenue for the quarter was up 51.3% compared to the same quarter last year. As a group, equities analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $8.85, for a total value of $177,000.00. Following the transaction, the director now owns 342,923 shares in the company, valued at approximately $3,034,868.55. This represents a 5.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Several large investors have recently added to or reduced their stakes in APLD. Wilmington Savings Fund Society FSB boosted its holdings in Applied Digital by 100.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after purchasing an additional 2,000 shares in the last quarter. R Squared Ltd bought a new stake in shares of Applied Digital during the 4th quarter worth about $36,000. US Bancorp DE acquired a new position in shares of Applied Digital during the 4th quarter valued at about $37,000. Jones Financial Companies Lllp acquired a new stake in Applied Digital in the 4th quarter worth approximately $39,000. Finally, Spire Wealth Management acquired a new stake in Applied Digital in the 4th quarter worth approximately $43,000. 65.67% of the stock is 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.