Applied Digital (NASDAQ:APLD) Trading Down 17.5% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s stock price traded down 17.5% during mid-day trading on Monday . The company traded as low as $22.90 and last traded at $22.98. 42,995,249 shares were traded during trading, an increase of 22% from the average session volume of 35,180,074 shares. The stock had previously closed at $27.86.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Compass Point began coverage on Applied Digital in a report on Monday, September 15th. They issued a “buy” rating on the stock. Wall Street Zen lowered Applied Digital from a “hold” rating to a “sell” rating in a research report on Sunday, October 19th. B. Riley reissued a “buy” rating on shares of Applied Digital in a research report on Wednesday, October 22nd. HC Wainwright raised their price objective on shares of Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Finally, Craig Hallum lifted their target price on shares of Applied Digital to $39.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $26.20.

Applied Digital Stock Performance

The business’s fifty day moving average price is $29.69 and its 200-day moving average price is $19.92. The stock has a market cap of $6.14 billion, a PE ratio of -19.47 and a beta of 6.94. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. The company had revenue of $64.22 million during the quarter, compared to analysts’ expectations of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.Applied Digital’s revenue for the quarter was up 84.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.15) earnings per share. As a group, equities research analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Ella G. Benson sold 42,569 shares of the company’s stock in a transaction that occurred on Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the completion of the sale, the director directly owned 69,256 shares of the company’s stock, valued at approximately $2,444,736.80. This represents a 38.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Rachel H. Lee sold 24,213 shares of Applied Digital stock in a transaction on Friday, October 24th. The stock was sold at an average price of $33.20, for a total transaction of $803,871.60. Following the transaction, the director owned 59,400 shares in the company, valued at $1,972,080. This represents a 28.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 328,035 shares of company stock valued at $11,376,479 in the last three months. Corporate insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Larson Financial Group LLC grew its stake in shares of Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after acquiring an additional 1,129 shares during the period. Dagco Inc. bought a new position in shares of Applied Digital in the third quarter worth approximately $27,000. Evolution Wealth Management Inc. increased its stake in shares of Applied Digital by 101.8% in the third quarter. Evolution Wealth Management Inc. now owns 1,600 shares of the company’s stock worth $37,000 after purchasing an additional 807 shares in the last quarter. Allworth Financial LP raised its position in shares of Applied Digital by 70.0% during the 3rd quarter. Allworth Financial LP now owns 1,746 shares of the company’s stock valued at $40,000 after purchasing an additional 719 shares during the period. Finally, CoreCap Advisors LLC lifted its stake in shares of Applied Digital by 124.9% during the 3rd quarter. CoreCap Advisors LLC now owns 1,804 shares of the company’s stock valued at $41,000 after buying an additional 1,002 shares in the last quarter. 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.