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 share price fell 3.8% during mid-day trading on Friday . The company traded as low as $13.53 and last traded at $13.99. 7,763,165 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 37,857,539 shares. The stock had previously closed at $14.55.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. Lake Street Capital upped their price objective on shares of Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 price target on the stock in a research report on Thursday, May 22nd. B. Riley increased their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. Finally, HC Wainwright raised their target price on Applied Digital from $12.00 to $15.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the stock. According to MarketBeat.com, Applied Digital presently has a consensus rating of "Buy" and a consensus price target of $15.18.

Applied Digital Price Performance

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36. The firm has a 50 day moving average price of $11.58 and a 200 day moving average price of $8.55.

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

Insiders Place Their Bets

In other Applied Digital news, Director Rachel H. Lee sold 24,212 shares of the business's stock in a transaction on 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 approximately $585,291. The trade was a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard N. Nottenburg sold 11,250 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $14.22, for a total value of $159,975.00. Following the transaction, the director directly owned 317,987 shares in the company, valued at approximately $4,521,775.14. This represents a 3.42% decrease in their position. The disclosure for this sale can be found here. 11.81% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently bought and sold shares of APLD. Atlantic Union Bankshares Corp bought a new position in Applied Digital during the second quarter valued at about $25,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Applied Digital during the 2nd quarter worth $26,000. PNC Financial Services Group Inc. bought a new position in Applied Digital in the 1st quarter worth $28,000. Geneos Wealth Management Inc. lifted its position in Applied Digital by 113.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock worth $37,000 after acquiring an additional 3,542 shares during the last quarter. Finally, Ameriflex Group Inc. acquired a new position in Applied Digital during the 2nd quarter worth $42,000. 65.67% of the stock is currently owned by institutional investors.

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.