Applied Digital (NASDAQ:APLD) Shares Down 3% - Here's Why

Key Points

• Applied Digital shares fell 3% in midday trading, with the stock hitting an intraday low of $44.62 and trading below the previous close of $46.59 on lighter-than-average volume.
• Despite the pullback, analyst sentiment remains positive: several firms recently raised price targets, and the stock carries a Moderate Buy consensus with an average target of $70.56.
• The company’s latest earnings showed mixed results—revenue surged 139.3% year over year to $108.55 million, but EPS came in below expectations at -$0.36 versus a -$0.13 estimate.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares were down 3% during mid-day trading on Monday . The stock traded as low as $44.62 and last traded at $45.20. Approximately 16,162,872 shares were traded during trading, a decline of 36% from the average session volume of 25,429,947 shares. The stock had previously closed at $46.59.

Analyst Upgrades and Downgrades

APLD has been the subject of a number of research analyst reports. Lucid Cap Mkts raised Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Needham & Company LLC upped their price objective on shares of Applied Digital from $66.00 to $83.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Citizens Jmp raised their target price on shares of Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a research report on Thursday, May 21st. Lake Street Capital lifted their target price on shares of Applied Digital from $70.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Finally, Craig Hallum increased their price target on shares of Applied Digital from $75.00 to $79.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Applied Digital has an average rating of "Moderate Buy" and a consensus price target of $70.56.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The business's 50-day moving average is $40.02 and its 200-day moving average is $33.50. The company has a market capitalization of $12.92 billion, a PE ratio of -61.08 and a beta of 5.69.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The business had revenue of $108.55 million for the quarter, compared to analysts' expectations of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. Applied Digital's revenue for the quarter was up 139.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.08) earnings per share. On average, research analysts anticipate that Applied Digital Corporation will post -0.68 earnings per share for the current year.

Insider Transactions at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the company's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the sale, the director owned 208,378 shares in the company, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of Applied Digital

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake 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 purchasing an additional 6,445,908 shares during the last quarter. Value Aligned Research Advisors LLC purchased a new stake in shares of Applied Digital during the fourth quarter valued at $138,380,000. Situational Awareness LP increased its holdings in Applied Digital by 87.0% in the 4th quarter. Situational Awareness LP now owns 11,339,060 shares of the company's stock worth $278,034,000 after buying an additional 5,274,905 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock worth $52,561,000 after buying an additional 5,198,223 shares in the last quarter. Finally, Marex Group plc raised its position in Applied Digital by 38,484.6% in the 4th quarter. Marex Group plc now owns 3,904,759 shares of the company's stock worth $95,745,000 after buying an additional 3,894,639 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.

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