Applied Digital (NASDAQ:APLD) Shares Down 1.1% - What's Next?

Key Points

• Applied Digital's shares fell by 1.1%, trading between $14.43 and $14.73 with significantly lower trading volume than usual.
• Equities analysts are generally optimistic, with 12 out of 13 analysts giving the stock a buy rating, and a consensus price target of $14.18.
• The company's recent quarterly earnings showed a negative net margin of 107.22%, but revenue increased by 41.3% year-over-year.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price traded down 1.1% on Wednesday . The stock traded as low as $14.43 and last traded at $14.73. 13,918,081 shares traded hands during trading, a decline of 64% from the average session volume of 38,529,418 shares. The stock had previously closed at $14.89.

Analysts Set New Price Targets

Several brokerages have recently commented on APLD. Lake Street Capital raised their price target on Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Compass Point raised shares of Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 target price for the company in a report on Friday, July 25th. HC Wainwright lifted their target price on shares of Applied Digital from $12.00 to $15.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. JMP Securities upped their price target on Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research report on Tuesday, June 3rd. Finally, Citigroup reissued an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. Twelve equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Applied Digital currently has an average rating of "Buy" and an average target price of $14.18.

Applied Digital Price Performance

The stock's 50 day simple moving average is $10.92 and its 200-day simple moving average is $8.13. The stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of -12.63 and a beta of 6.17. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.77 and a quick ratio of 0.77.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The firm had revenue of $38.01 million during the quarter, compared to analysts' expectations of $42.86 million. During the same period in the prior year, the company posted ($0.14) earnings per share. Applied Digital's revenue for the quarter was up 41.3% on a year-over-year basis. On average, analysts expect that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the transaction, the director directly owned 83,613 shares in the company, valued at approximately $585,291. This trade represents a 22.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 11.81% of the company's stock.

Institutional Trading of Applied Digital

Several hedge funds have recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC grew its stake in shares of Applied Digital by 6.0% in the second quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock worth $160,000 after acquiring an additional 900 shares during the last quarter. Corebridge Financial Inc. grew its position in Applied Digital by 2.0% in the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock worth $546,000 after purchasing an additional 1,899 shares during the last quarter. Wedbush Securities Inc. increased its holdings in shares of Applied Digital by 14.8% during the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock worth $87,000 after purchasing an additional 2,000 shares during the period. Wellington Management Group LLP lifted its stake in shares of Applied Digital by 11.7% in the first quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock valued at $107,000 after buying an additional 2,001 shares during the period. Finally, Teacher Retirement System of Texas grew its position in Applied Digital by 10.2% during the second quarter. Teacher Retirement System of Texas now owns 27,252 shares of the company's stock worth $274,000 after buying an additional 2,515 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.