Applied Digital (NASDAQ:APLD) Shares Down 3.7% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) shares were down 3.7% on Friday . The company traded as low as $6.99 and last traded at $7.02. Approximately 3,394,034 shares changed hands during trading, a decline of 87% from the average daily volume of 26,302,871 shares. The stock had previously closed at $7.29.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on APLD shares. Needham & Company LLC reissued a “buy” rating and set a $11.00 target price on shares of Applied Digital in a report on Monday, February 24th. Compass Point started coverage on Applied Digital in a research report on Tuesday, January 28th. They issued a “buy” rating and a $10.00 price target on the stock. Northland Securities raised their price target on Applied Digital from $12.00 to $20.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 4th. Cantor Fitzgerald decreased their price target on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 15th. Finally, HC Wainwright raised their price target on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Wednesday, January 15th. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $12.11.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The stock has a 50-day simple moving average of $7.96 and a 200-day simple moving average of $7.89. The stock has a market cap of $1.57 billion, a P/E ratio of -4.08 and a beta of 4.69.

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

Insider Buying and Selling at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the sale, the director now directly owns 342,923 shares of the company’s stock, valued at approximately $3,034,868.55. This trade represents a 5.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Hedge funds have recently made changes to their positions in the company. Wilmington Savings Fund Society FSB boosted its stake in shares of Applied Digital by 100.0% during the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock valued at $31,000 after purchasing an additional 2,000 shares in the last quarter. R Squared Ltd acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $36,000. US Bancorp DE acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $37,000. Jones Financial Companies Lllp acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $39,000. Finally, Spire Wealth Management acquired a new stake in shares of Applied Digital during the fourth quarter valued at about $43,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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.