Applied Digital (NASDAQ:APLD) Stock Price Down 4.8% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) dropped 4.8% during trading on Thursday. The company traded as low as $19.16 and last traded at $19.41. 15,560,499 shares traded hands during trading, a decline of 33% from the average daily volume of 23,116,109 shares. The stock had previously closed at $20.39.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. B. Riley Financial restated a “buy” rating and set a $75.00 price objective (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Needham & Company LLC dropped their price target on Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Wall Street Zen cut Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Finally, Rothschild & Co Redburn set a $22.00 price objective on shares of Applied Digital and gave the stock a “neutral” rating in a research report on Monday, September 21st. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Applied Digital currently has a consensus rating of “Moderate Buy” and an average target price of $59.75.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56. The stock has a 50-day moving average price of $24.45 and a 200-day moving average price of $31.54. The firm has a market capitalization of $5.87 billion, a PE ratio of -11.84 and a beta of 5.99.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. The firm had revenue of $300.39 million during the quarter, compared to the consensus estimate of $116.29 million. Applied Digital had a negative return on equity of 27.21% and a negative net margin of 51.28%. Applied Digital’s revenue for the quarter was up 367.8% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.03) earnings per share. On average, research analysts expect that Applied Digital Corporation will post -2.17 EPS for the current fiscal year.

Insider Transactions at Applied Digital

In other Applied Digital news, President Jason Gechen Zhang acquired 300,000 shares of the stock in a transaction that occurred on Friday, October 16th. The stock was acquired at an average price of $18.86 per share, with a total value of $5,658,000.00. Following the transaction, the president directly owned 2,839,227 shares in the company, valued at approximately $53,547,821.22. This represents a 11.81% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard N. Nottenburg sold 75,000 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares in the company, valued at $4,154,724.70. This represents a 35.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Situational Awareness LP grew its position in shares of Applied Digital by 14.1% during the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after acquiring an additional 1,906,178 shares during the last quarter. Equitec Proprietary Markets LLC acquired a new position in Applied Digital during the 2nd quarter valued at about $312,349,000. Hsbc Holdings PLC increased its stake in shares of Applied Digital by 6.2% in the first quarter. Hsbc Holdings PLC now owns 1,240,239 shares of the company’s stock valued at $28,377,000 after purchasing an additional 72,460 shares during the period. Sei Investments Co. increased its stake in shares of Applied Digital by 33.0% in the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after purchasing an additional 271,618 shares during the period. Finally, Janus Henderson Group PLC grew its holdings in Applied Digital by 318.5% in the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock worth $18,638,000 after buying an additional 597,548 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.