Applied Digital (NASDAQ:APLD) Shares Down 5.2% - Here's Why

Key Points

• Shares fell 5.2% on Tuesday to $35.46 (intraday low $33.62) on lighter-than-average volume; the stock carries a market cap of $9.91 billion and a high beta of 6.89.
• Analysts are broadly bullish with a consensus "Buy" (2 Strong Buy, 12 Buy, 1 Sell) and an average price target of $33.27, though several firms recently raised targets as high as $53–$58.
• Applied Digital missed EPS for the quarter ($0.11 loss vs. $0.09 expected) but reported a revenue beat ($126.6M vs. $82.2M), with revenue up 250% YoY while remaining unprofitable (negative net margin 43.5%); insiders sold roughly 526,641 shares (~$18.6M) last quarter.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 5.2% during trading on Tuesday . The company traded as low as $33.62 and last traded at $35.46. Approximately 34,357,991 shares changed hands during trading, a decline of 22% from the average daily volume of 44,038,691 shares. The stock had previously closed at $37.40.

Analyst Upgrades and Downgrades

APLD has been the topic of a number of research analyst reports. B. Riley lifted their target price on Applied Digital to $53.00 and gave the company a "buy" rating in a report on Friday, January 9th. Craig Hallum raised their price objective on Applied Digital to $39.00 and gave the stock a "buy" rating in a report on Thursday, October 23rd. Roth Capital boosted their target price on Applied Digital to $58.00 and gave the stock a "buy" rating in a report on Thursday, January 8th. Arete assumed coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They set a "buy" rating for the company. Finally, Needham & Company LLC restated a "buy" rating and issued a $41.00 price target on shares of Applied Digital in a report on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $33.27.

Applied Digital Stock Down 5.2%

The stock has a market capitalization of $9.91 billion, a price-to-earnings ratio of -65.67 and a beta of 6.89. The firm has a 50-day moving average of $28.08 and a 200 day moving average of $23.21. The company has a current ratio of 4.82, a quick ratio of 4.82 and a debt-to-equity ratio of 1.79.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The firm had revenue of $126.59 million during the quarter, compared to analyst estimates of $82.22 million. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The firm's revenue was up 250.1% compared to the same quarter last year. During the same period last year, the business earned ($0.06) EPS. On average, sell-side analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the firm's stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $34.08, for a total transaction of $3,408,000.00. Following the completion of the sale, the chief financial officer directly owned 158,912 shares in the company, valued at $5,415,720.96. This trade represents a 38.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 34,375 shares of the firm's stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $33.23, for a total value of $1,142,281.25. Following the sale, the director owned 263,612 shares of the company's stock, valued at approximately $8,759,826.76. This trade represents a 11.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 526,641 shares of company stock worth $18,606,039 over the last quarter. Company insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Institutional investors have recently added to or reduced their stakes in the stock. Atlantic Union Bankshares Corp bought a new position in Applied Digital during the 2nd quarter valued at $25,000. Noble Wealth Management PBC acquired a new stake in shares of Applied Digital in the 4th quarter valued at about $25,000. Larson Financial Group LLC lifted its position in shares of Applied Digital by 56,450.0% during the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after purchasing an additional 1,129 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Applied Digital during the second quarter worth about $26,000. Finally, Dagco Inc. acquired a new position in Applied Digital in the third quarter worth about $27,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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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