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

Shares of Applied Digital Co. (NASDAQ:APLD) dropped 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. Approximately 16,873,491 shares were traded during trading, a decline of 21% from the average daily volume of 21,458,602 shares. The stock had previously closed at $8.54.

A number of other research firms have also weighed in on APLD. HC Wainwright raised their price objective on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Craig Hallum raised their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Lake Street Capital boosted their price objective on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Roth Mkm reissued a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Wednesday. Seven analysts have rated the stock with a buy rating, According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $11.29.

Insider Buying and Selling at Applied Digital

In other news, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction 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 completion of the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at $35,658,786. This trade represents a 4.91 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 19,369 shares of Applied Digital stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $7.51, for a total value of $145,461.19. Following the sale, the director now owns 384,317 shares in the company, valued at $2,886,220.67. The trade was a 4.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 279,369 shares of company stock worth $2,525,561. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Hood River Capital Management LLC raised its holdings 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 period. Geode Capital Management LLC boosted its holdings in Applied Digital by 48.7% in the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after buying an additional 1,002,862 shares during the period. State Street Corp grew its stake in Applied Digital by 14.0% in the 3rd quarter. State Street Corp now owns 2,337,267 shares of the company’s stock valued at $19,282,000 after buying an additional 286,852 shares in the last quarter. Royce & Associates LP raised its holdings in Applied Digital by 1.4% during the 3rd quarter. Royce & Associates LP now owns 1,132,140 shares of the company’s stock valued at $9,340,000 after acquiring an additional 15,763 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in shares of Applied Digital by 36.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after acquiring an additional 240,554 shares in the last quarter. 65.67% of the stock is owned by institutional investors.

Applied Digital Stock Down 2.8 %

The stock has a market capitalization of $1.75 billion, a P/E ratio of -7.09 and a beta of 4.78. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The stock has a fifty day moving average price of $8.74 and a 200 day moving average price of $6.94.

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

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.