Applied Digital (NASDAQ:APLD) Shares Down 3.8% - Here's Why

Key Points

• Applied Digital Corporation's shares fell by 3.8%, with the stock trading as low as $13.53 during mid-day trading on Friday.
• Analysts have upgraded their price targets for APLD, with one firm raising it from $12.00 to $18.00, reflecting a generally positive view on the company's potential.
• In its recent earnings report, Applied Digital reported an EPS of ($0.12), matching analysts' expectations, but its revenue fell short of expectations at $38.01 million compared to a forecast of $42.86 million.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price dropped 3.8% during mid-day trading on Friday . The stock traded as low as $13.53 and last traded at $13.99. Approximately 7,763,165 shares traded hands during trading, a decline of 79% from the average daily volume of 37,857,539 shares. The stock had previously closed at $14.55.

Analyst Ratings Changes

Several equities analysts have recently issued reports on APLD shares. JMP Securities upped their price objective on shares of Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a report on Tuesday, June 3rd. Citigroup restated an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. Craig Hallum upped their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Tuesday, June 3rd. Citizens Jmp upgraded shares of Applied Digital to a "strong-buy" rating and set a $12.00 price target on the stock in a research note on Thursday, May 22nd. Finally, HC Wainwright upped their target price on Applied Digital from $12.00 to $15.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Twelve analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $14.18.

Applied Digital Stock Performance

The stock has a market capitalization of $3.73 billion, a price-to-earnings ratio of -13.07 and a beta of 6.17. The firm has a fifty day moving average of $11.45 and a 200 day moving average of $8.36. 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) EPS for the quarter, hitting analysts' consensus estimates of ($0.12). The business had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The business's revenue was up 41.3% on a year-over-year basis. During the same quarter last year, the company earned ($0.14) EPS. On average, sell-side analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total transaction of $169,484.00. Following the sale, the director directly owned 83,613 shares in the company, valued at $585,291. This trade represents a 22.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard N. Nottenburg sold 11,250 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $14.22, for a total value of $159,975.00. Following the sale, the director owned 317,987 shares in the company, valued at $4,521,775.14. This trade represents a 3.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.81% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas acquired a new stake in Applied Digital in the 1st quarter valued at $139,000. Exchange Traded Concepts LLC grew its position in shares of Applied Digital by 4.0% in the first quarter. Exchange Traded Concepts LLC now owns 1,042,035 shares of the company's stock valued at $5,856,000 after purchasing an additional 39,945 shares during the period. Register Financial Advisors LLC grew its position in shares of Applied Digital by 26.2% in the first quarter. Register Financial Advisors LLC now owns 254,200 shares of the company's stock valued at $1,429,000 after purchasing an additional 52,700 shares during the period. Wells Fargo & Company MN grew its position in shares of Applied Digital by 96.6% in the fourth quarter. Wells Fargo & Company MN now owns 119,963 shares of the company's stock valued at $917,000 after purchasing an additional 58,943 shares during the period. Finally, Hunter Associates Investment Management LLC grew its position in shares of Applied Digital by 15.9% in the first quarter. Hunter Associates Investment Management LLC now owns 535,921 shares of the company's stock valued at $3,019,000 after purchasing an additional 73,718 shares during the period. Institutional investors and hedge funds 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.

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