Applied Digital (NASDAQ:APLD) Stock Price Down 11.7% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD)’s stock price fell 11.7% during trading on Thursday . The company traded as low as $27.62 and last traded at $27.85. 27,957,256 shares were traded during mid-day trading, a decline of 30% from the average session volume of 39,666,516 shares. The stock had previously closed at $31.54.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on APLD shares. Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research note on Saturday, January 10th. B. Riley Financial raised their price objective on shares of Applied Digital to $53.00 and gave the stock a “buy” rating in a report on Friday, January 9th. Needham & Company LLC reiterated a “buy” rating and issued a $41.00 price objective on shares of Applied Digital in a report on Thursday, January 8th. Texas Capital upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Tuesday, January 20th. Finally, Craig Hallum raised their target price on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Three research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $34.73.

Applied Digital Stock Up 25.5%

The firm has a market capitalization of $9.77 billion, a P/E ratio of -64.72 and a beta of 7.25. The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The company’s 50-day simple moving average is $31.16 and its two-hundred day simple moving average is $25.33.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The firm had revenue of $126.59 million during the quarter, compared to analysts’ expectations of $82.22 million. Applied Digital had a negative return on equity of 13.53% and a negative net margin of 43.49%.The company’s revenue was up 250.1% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.06) earnings per share. As a group, research analysts expect that Applied Digital Corporation 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 12,000 shares of the stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $35.45, for a total value of $425,400.00. Following the completion of the transaction, the director owned 233,378 shares of the company’s stock, valued at approximately $8,273,250.10. This trade represents a 4.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the sale, the chief executive officer owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. This trade represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 244,593 shares of company stock valued at $9,003,278 over the last quarter. 9.50% of the stock is owned by corporate insiders.

Institutional Trading of Applied Digital

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after buying an additional 6,445,908 shares during the period. Hood River Capital Management LLC lifted its position in shares of Applied Digital by 2.8% during the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock worth $220,120,000 after purchasing an additional 592,314 shares during the last quarter. Situational Awareness LP lifted its position in shares of Applied Digital by 63.3% during the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after purchasing an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets grew its holdings in shares of Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after purchasing an additional 5,198,223 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Applied Digital by 20.2% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,199,135 shares of the company’s stock worth $73,388,000 after buying an additional 537,839 shares during the period. Institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.