Applied Digital (NASDAQ:APLD) Trading Down 3% After Analyst Downgrade

Applied Digital Co. (NASDAQ:APLD) traded down 3% during mid-day trading on Wednesday after Cantor Fitzgerald lowered their price target on the stock from $15.00 to $14.00. Cantor Fitzgerald currently has an overweight rating on the stock. Applied Digital traded as low as $8.11 and last traded at $8.28. 16,873,491 shares were traded during mid-day trading, a decline of 21% from the average session volume of 21,458,602 shares. The stock had previously closed at $8.54.

A number of other analysts also recently issued reports on the stock. Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Applied Digital in a report on Wednesday. Lake Street Capital increased their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Craig Hallum lifted their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Finally, 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. Seven investment analysts have rated the stock with a buy rating, According to MarketBeat, Applied Digital currently has a consensus rating of “Buy” and an average price target of $11.29.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction on 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 sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard N. Nottenburg sold 19,369 shares of the firm’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $7.51, for a total transaction of $145,461.19. Following the transaction, the director now directly owns 384,317 shares of the company’s stock, valued at approximately $2,886,220.67. This trade represents a 4.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 269,369 shares of company stock valued at $2,445,461 in the last ninety days. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Charles Schwab Investment Management Inc. raised its position in Applied Digital by 36.5% in the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock valued at $7,419,000 after purchasing an additional 240,554 shares during the period. Quadrature Capital Ltd acquired a new stake in shares of Applied Digital during the third quarter worth approximately $545,000. Barclays PLC increased its position in shares of Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after purchasing an additional 428,428 shares during the last quarter. Virtu Financial LLC bought a new stake in Applied Digital in the third quarter valued at about $2,030,000. Finally, B. Riley Wealth Advisors Inc. lifted its stake in Applied Digital by 66.1% during the second quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock worth $4,609,000 after purchasing an additional 308,223 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Stock Performance

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’s 50-day moving average price is $8.79 and its 200-day moving average price is $6.96. The company has a market capitalization of $1.90 billion, a P/E ratio of -7.68 and a beta of 4.78.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.08. The business had revenue of $63.87 million during the quarter, compared to analyst estimates of $62.41 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business’s revenue for the quarter was up 51.3% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.05) EPS. As a group, equities analysts expect that Applied Digital Co. will post -0.4 EPS for the current year.

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.