Applied Digital (NASDAQ:APLD) Trading Down 10.1% – What’s Next?

Applied Digital Co. (NASDAQ:APLD)’s stock price fell 10.1% during trading on Monday . The company traded as low as $7.41 and last traded at $7.54. 7,410,796 shares changed hands during trading, a decline of 15% from the average session volume of 8,673,314 shares. The stock had previously closed at $8.39.

Wall Street Analysts Forecast Growth

APLD has been the subject of a number of research reports. 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. HC Wainwright lifted their target price on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research report on Wednesday, October 16th. B. Riley increased their price target on Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Friday, September 13th. Cantor Fitzgerald initiated coverage on Applied Digital in a report on Friday, December 20th. They issued an “overweight” rating and a $15.00 price objective for the company. Finally, Roth Mkm reaffirmed a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. Seven research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $11.14.

Applied Digital Trading Down 5.6 %

The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $1.67 billion, a P/E ratio of -6.77 and a beta of 4.67. The company has a 50-day moving average price of $8.55 and a 200 day moving average price of $6.70.

Applied Digital (NASDAQ:APLD) last announced its 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. Applied Digital had a negative net margin of 74.95% and a negative return on equity of 88.87%. The business had revenue of $60.70 million during the quarter, compared to the consensus estimate of $54.85 million. During the same period in the previous year, the company posted ($0.10) earnings per share. The firm’s revenue was up 67.2% on a year-over-year basis. On average, research analysts forecast that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Richard N. Nottenburg sold 50,000 shares of the stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $460,000.00. Following the completion of the sale, the director now directly owns 334,317 shares in the company, valued at approximately $3,075,716.40. This trade represents a 13.01 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 359,369 shares of company stock valued at $3,115,161 over the last 90 days. Insiders own 11.81% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

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

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.