Applied Digital (NASDAQ:APLD) Trading Down 2.1% – Here’s Why

Shares of Applied Digital Co. (NASDAQ:APLD) were down 2.1% during mid-day trading on Tuesday . The company traded as low as $12.60 and last traded at $12.75. Approximately 24,259,948 shares traded hands during trading, a decline of 37% from the average daily volume of 38,661,836 shares. The stock had previously closed at $13.02.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Compass Point reissued a “neutral” rating and set a $13.00 target price (up previously from $10.00) on shares of Applied Digital in a research report on Monday. B. Riley boosted their price target on shares of Applied Digital from $8.00 to $15.00 and gave the stock a “buy” rating in a research report on Wednesday, June 4th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a research report on Tuesday, June 3rd. Craig Hallum lifted their price target on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Tuesday, June 3rd. Finally, Cantor Fitzgerald cut their target price on Applied Digital from $14.00 to $7.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 15th. One equities research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $12.73.

Applied Digital Price Performance

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The stock has a market cap of $2.78 billion, a P/E ratio of -7.13 and a beta of 6.08. The firm has a 50 day moving average price of $6.28 and a 200 day moving average price of $7.55.

Applied Digital (NASDAQ:APLD) last released its earnings results on Monday, April 14th. The company reported ($0.16) EPS for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.05). The firm had revenue of $52.92 million for the quarter, compared to the consensus estimate of $62.91 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. During the same quarter in the previous year, the business posted ($0.24) EPS. On average, analysts forecast that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of Applied Digital stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total transaction of $169,484.00. Following the transaction, the director now directly owns 83,613 shares of the company’s stock, valued at $585,291. This trade represents a 22.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 11.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently bought and sold shares of the stock. Wells Fargo & Company MN increased its holdings in Applied Digital by 96.6% in the fourth quarter. Wells Fargo & Company MN now owns 119,963 shares of the company’s stock valued at $917,000 after buying an additional 58,943 shares in the last quarter. Vanguard Group Inc. grew its position in shares of Applied Digital by 39.1% during the 4th quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company’s stock valued at $97,487,000 after acquiring an additional 3,587,619 shares during the period. Rhumbline Advisers increased its stake in shares of Applied Digital by 68.7% in the 4th quarter. Rhumbline Advisers now owns 258,892 shares of the company’s stock valued at $1,978,000 after purchasing an additional 105,428 shares in the last quarter. Numerai GP LLC acquired a new position in Applied Digital in the 4th quarter worth about $790,000. Finally, Barclays PLC boosted its position in Applied Digital by 736.8% during the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after purchasing an additional 428,428 shares in the last quarter. Hedge funds and other 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.