Applied Digital (NASDAQ:APLD) Stock Price Down 4.2% - Here's What Happened

Key Points

• Applied Digital Corporation shares fell by 4.2% to $15.65, with a significant trading volume decline of 71% compared to the average.
• Despite the drop, analysts are generally optimistic, with multiple firms issuing buy ratings and target price increases, including raising the target from $12.00 to $23.00.
• The company reported a revenue increase of 41.3% year-over-year, though it posted an EPS of ($0.12), aligning with analyst expectations.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price fell 4.2% on Tuesday . The company traded as low as $15.51 and last traded at $15.65. 11,062,463 shares changed hands during trading, a decline of 71% from the average session volume of 37,948,559 shares. The stock had previously closed at $16.34.

Analysts Set New Price Targets

APLD has been the topic of several recent research reports. Craig Hallum lifted their price objective on shares of Applied Digital from $12.00 to $23.00 and gave the company a "buy" rating in a research report on Monday, August 18th. HC Wainwright lifted their price objective 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. Citizens Jmp upgraded shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective on the stock in a research report on Thursday, May 22nd. Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Roth Capital reiterated a "buy" rating on shares of Applied Digital in a research report on Monday, June 2nd. 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 data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $15.18.

Applied Digital Stock Up 1.8%

The stock's 50-day moving average is $11.81 and its 200-day moving average is $8.71. The stock has a market cap of $4.20 billion, a P/E ratio of -14.72 and a beta of 6.17. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, hitting the consensus estimate 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 for the quarter, compared to analysts' expectations of $42.86 million. During the same period in the previous year, the business earned ($0.14) earnings per share. Applied Digital's revenue for the quarter was up 41.3% compared to the same quarter last year. As a group, research analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 11,250 shares of the business'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 directly owned 317,987 shares in the company, valued at approximately $4,521,775.14. The trade was a 3.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hood River Capital Management LLC boosted its position in shares of Applied Digital by 2.8% in the 2nd quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company's stock valued at $220,120,000 after purchasing an additional 592,314 shares during the period. Vanguard Group Inc. boosted its position in shares of Applied Digital by 5.7% in the 1st quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company's stock valued at $75,819,000 after purchasing an additional 730,978 shares during the period. Situational Awareness LP boosted its position in shares of Applied Digital by 63.3% in the 2nd quarter. Situational Awareness LP now owns 6,591,800 shares of the company's stock valued at $66,379,000 after purchasing an additional 2,556,200 shares during the period. BNP Paribas Financial Markets boosted its position in shares of 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 valued at $52,561,000 after purchasing an additional 5,198,223 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Applied Digital by 24.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company's stock valued at $26,799,000 after purchasing an additional 514,896 shares during the period. 65.67% of the stock is currently owned by institutional investors.

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.