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

Applied Digital Co. (NASDAQ:APLD) shares gapped down prior to trading on Thursday . The stock had previously closed at $7.36, but opened at $6.85. Applied Digital shares last traded at $6.84, with a volume of 18,095,742 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on APLD shares. HC Wainwright boosted their price objective on 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 increased their price objective 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. 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 note on Friday, September 13th. Roth Mkm restated a “buy” rating and issued a $10.00 price objective on shares of Applied Digital in a research report on Thursday, October 10th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Friday. Six analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital has an average rating of “Buy” and a consensus target price of $10.50.

Applied Digital Trading Down 4.4 %

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 market cap of $1.39 billion, a PE ratio of -5.52 and a beta of 4.56. The stock has a 50-day moving average price of $6.69 and a two-hundred day moving average price of $5.25.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.13. The business had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The company’s revenue was up 67.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.10) EPS. Sell-side analysts forecast that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 80,000 shares of the business’s stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the sale, the director now directly owns 433,686 shares in the company, valued at $3,196,265.82. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In related news, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction on Thursday, September 5th. The stock was sold at an average price of $5.50, for a total transaction of $55,000.00. Following the sale, the director now owns 218,506 shares in the company, valued at approximately $1,201,783. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of Applied Digital stock in a transaction on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the transaction, the director now directly owns 433,686 shares of the company’s stock, valued at $3,196,265.82. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 100,000 shares of company stock worth $724,700 over the last 90 days. 11.81% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently made changes to their positions in the company. Hood River Capital Management LLC raised its position in 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. Vanguard Group Inc. lifted its stake in shares of Applied Digital by 70.2% during the 1st quarter. Vanguard Group Inc. now owns 6,176,073 shares of the company’s stock worth $26,434,000 after acquiring an additional 2,547,485 shares during the last quarter. Van ECK Associates Corp lifted its stake in shares of Applied Digital by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 2,869,980 shares of the company’s stock worth $17,077,000 after acquiring an additional 443,699 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Applied Digital by 69.3% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,311,594 shares of the company’s stock valued at $5,614,000 after acquiring an additional 536,948 shares during the period. Finally, B. Riley Wealth Advisors Inc. grew its position in Applied Digital by 66.1% in the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock valued at $4,609,000 after acquiring an additional 308,223 shares during the last quarter. Institutional investors own 65.67% of the company’s stock.

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.