Applied Digital (NASDAQ:APLD) Trading Down 6.1% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shares fell 6.1% during mid-day trading on Tuesday . The stock traded as low as $25.93 and last traded at $26.08. 17,762,110 shares were traded during mid-day trading, a decline of 49% from the average session volume of 35,027,445 shares. The stock had previously closed at $27.78.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Northland Securities upped their target price on shares of Applied Digital to $40.00 and gave the stock an “outperform” rating in a research note on Friday, October 10th. Craig Hallum increased their price objective on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research report on Wednesday, October 8th. HC Wainwright boosted their target price on shares of Applied Digital from $20.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. Finally, Citigroup reiterated an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $26.20.

Applied Digital Price Performance

The company’s 50 day moving average price is $28.79 and its 200 day moving average price is $20.43. The company has a market cap of $7.18 billion, a price-to-earnings ratio of -22.76 and a beta of 6.94. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29.

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

Insider Activity

In other Applied Digital news, Director Rachel H. Lee sold 24,213 shares of the company’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $33.20, for a total transaction of $803,871.60. Following the transaction, the director directly owned 59,400 shares in the company, valued at approximately $1,972,080. This represents a 28.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Chuck Hastings sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $34.27, for a total value of $856,750.00. Following the sale, the director directly owned 426,612 shares in the company, valued at $14,619,993.24. This trade represents a 5.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 328,035 shares of company stock valued at $11,376,479 in the last quarter. Insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. MRP Capital Investments LLC acquired a new stake in Applied Digital in the 3rd quarter valued at about $46,000. Allworth Financial LP grew its position in shares of Applied Digital by 70.0% in the third 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 last quarter. IFP Advisors Inc acquired a new stake in shares of Applied Digital in the third quarter valued at approximately $144,000. Swiss Life Asset Management Ltd purchased a new position in shares of Applied Digital during the 3rd quarter worth approximately $232,000. Finally, CIBC Bancorp USA Inc. acquired a new position in shares of Applied Digital during the 3rd quarter worth approximately $524,000. Institutional investors and hedge funds 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.