Applied Digital (NASDAQ:APLD) Shares Down 3.4% - Here's Why

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 3.4% during trading on Wednesday . The company traded as low as $9.88 and last traded at $9.97. Approximately 14,241,624 shares were traded during trading, a decline of 64% from the average daily volume of 39,154,594 shares. The stock had previously closed at $10.32.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on APLD shares. Needham & Company LLC reissued a "buy" rating and issued a $10.00 target price on shares of Applied Digital in a research note on Monday, June 2nd. JMP Securities boosted their price objective on shares of Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research report on Tuesday, June 3rd. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 target price for the company in a research note on Thursday, May 22nd. HC Wainwright raised their price objective on Applied Digital from $7.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Finally, B. Riley upped their target price on Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. One research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $12.73.

Applied Digital Stock Performance

The stock has a market cap of $2.24 billion, a price-to-earnings ratio of -7.27 and a beta of 6.08. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.56. The stock's 50-day moving average is $7.61 and its 200-day moving average is $7.66.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Monday, April 14th. The company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.05). Applied Digital had a negative net margin of 109.99% and a negative return on equity of 77.49%. The business had revenue of $52.92 million for the quarter, compared to analyst estimates of $62.91 million. During the same quarter in the previous year, the firm posted ($0.24) EPS. On average, analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Activity at Applied Digital

In related news, Director Rachel H. Lee sold 24,212 shares of Applied Digital stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total transaction of $169,484.00. Following the sale, the director now owns 83,613 shares of the company's stock, valued at $585,291. The trade was a 22.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Corebridge Financial Inc. raised its holdings in Applied Digital by 2.0% in the first quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock valued at $546,000 after acquiring an additional 1,899 shares in the last quarter. Wedbush Securities Inc. increased its position in shares of Applied Digital by 14.8% in 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 last quarter. Wellington Management Group LLP raised its stake in shares of Applied Digital by 11.7% in the 1st quarter. Wellington Management Group LLP now owns 19,056 shares of the company's stock valued at $107,000 after purchasing an additional 2,001 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its position in shares of Applied Digital by 29.4% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,778 shares of the company's stock worth $77,000 after purchasing an additional 3,127 shares during the last quarter. Finally, Amalgamated Bank lifted its position in shares of Applied Digital by 113.3% during the fourth quarter. Amalgamated Bank now owns 6,538 shares of the company's stock worth $50,000 after purchasing an additional 3,473 shares during the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

About Applied Digital

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.

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