Applied Digital (NASDAQ:APLD) Shares Gap Down – Here’s Why

Applied Digital Co. (NASDAQ:APLD) gapped down prior to trading on Monday . The stock had previously closed at $7.12, but opened at $6.55. Applied Digital shares last traded at $6.88, with a volume of 6,283,947 shares.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Roth Mkm restated a “buy” rating and set a $10.00 price target on shares of Applied Digital in a research report on Thursday, October 10th. Northland Securities lifted 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. Lake Street Capital upped their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Compass Point began coverage on shares of Applied Digital in a research report on Tuesday, January 28th. They set a “buy” rating and a $10.00 target price for the company. Finally, Needham & Company LLC reissued a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Wednesday, January 15th. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $12.11.

Applied Digital Trading Up 4.6 %

The company has a fifty day moving average price of $8.73 and a 200 day moving average price of $7.11. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.08. The firm had revenue of $63.87 million for the quarter, compared to analysts’ expectations of $62.41 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. The business’s revenue was up 51.3% on a year-over-year basis. During the same quarter last year, the business earned ($0.05) earnings per share. On average, analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares of the stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.85, for a total value of $177,000.00. Following the completion of the transaction, the director now directly owns 342,923 shares of the company’s stock, valued at $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 Securities & Exchange Commission, which is available at this link. Also, CEO Wes Cummins sold 200,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 289,369 shares of company stock valued at $2,622,461 in the last 90 days. Insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB raised its position in Applied Digital by 100.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after buying an additional 2,000 shares during the last quarter. R Squared Ltd purchased a new position in shares of Applied Digital in the fourth quarter worth approximately $36,000. Spire Wealth Management bought a new stake in Applied Digital during the fourth quarter valued at approximately $43,000. Amalgamated Bank increased its holdings in Applied Digital by 113.3% during the fourth quarter. Amalgamated Bank now owns 6,538 shares of the company’s stock valued at $50,000 after buying an additional 3,473 shares during the last quarter. Finally, KBC Group NV bought a new position in Applied Digital in the fourth quarter worth approximately $55,000. Institutional investors own 65.67% of the company’s stock.

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.