Applied Digital (NASDAQ:APLD) Stock Price Down 5.3% - Here's What Happened

Key Points

• Applied Digital Corporation (NASDAQ:APLD) experienced a 5.3% decline in its share price, trading at $10.02 with approximately 8.9 million shares exchanged, significantly below its average daily volume.
• Analysts have expressed bullish sentiment towards APLD, with several upgrades to buy ratings and price targets ranging from $12.00 to $18.00, pushing the average target price to $12.73.
• Institutional investors are increasingly investing in APLD, with 65.67% of the stock now held by funds, including significant stakes acquired by companies like Vanguard and Wells Fargo.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 5.3% on Tuesday . The company traded as low as $9.96 and last traded at $10.02. Approximately 8,976,211 shares were traded during trading, a decline of 76% from the average daily volume of 37,840,629 shares. The stock had previously closed at $10.58.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on APLD shares. Compass Point raised Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 price objective on the stock in a research report on Friday, July 25th. Lake Street Capital increased their target price on Applied Digital from $14.00 to $18.00 and gave the company a "buy" rating in a report on Thursday. Roth Capital reaffirmed a "buy" rating on shares of Applied Digital in a report on Monday, June 2nd. Cantor Fitzgerald lowered their price objective on Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. Finally, Needham & Company LLC upped their price objective on Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday. Twelve equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Applied Digital presently has a consensus rating of "Buy" and a consensus target price of $14.18.

Applied Digital Stock Down 4.7%

The firm has a market capitalization of $2.82 billion, a price-to-earnings ratio of -11.49 and a beta of 6.04. The business's fifty day moving average price is $10.39 and its 200 day moving average price is $7.98. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.56.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.12). The firm had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. Applied Digital had a negative return on equity of 54.03% and a negative net margin of 107.22%. The firm's revenue for the quarter was up 41.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.14) EPS. On average, equities analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.

Insiders Place Their Bets

In other news, Director Rachel H. Lee sold 24,212 shares of the firm's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the sale, the director owned 83,613 shares in the company, valued at approximately $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 accessible through this hyperlink. 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 business. Ameriflex Group Inc. acquired a new position in Applied Digital during the second quarter worth $42,000. PNC Financial Services Group Inc. purchased a new stake in shares of Applied Digital during the 1st quarter worth $28,000. Geneos Wealth Management Inc. boosted its position in shares of 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 purchasing an additional 3,542 shares in the last quarter. ORG Wealth Partners LLC purchased a new stake in shares of Applied Digital during the 2nd quarter worth $66,000. Finally, Ameritas Advisory Services LLC purchased a new stake in shares of Applied Digital during the 2nd quarter worth $69,000. Hedge funds and other institutional investors 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.