Applied Digital (NASDAQ:APLD) Shares Down 6.6% - Here's Why

Key Points

• Applied Digital shares fell by 6.6% on Friday, trading as low as $33.06, with a total of 30.3 million shares exchanged, indicating a drop in trading volume compared to previous days.
• Analysts have varying ratings on APLD; one rated it as a Strong Buy, while the average target price is set at $22.10, suggesting potential upside despite recent stock price declines.
• The company reported a net margin of -111.29% for the last quarter and projected a -0.96 EPS for the current year, despite an 84.3% year-over-year revenue increase.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) was down 6.6% on Friday . The stock traded as low as $33.06 and last traded at $34.24. Approximately 30,279,651 shares traded hands during trading, a decline of 18% from the average daily volume of 36,763,977 shares. The stock had previously closed at $36.64.

Analysts Set New Price Targets

Several equities research analysts have weighed in on APLD shares. Compass Point started coverage on Applied Digital in a report on Monday, September 15th. They set a "buy" rating on the stock. Craig Hallum upped their price target on Applied Digital from $12.00 to $23.00 and gave the stock a "buy" rating in a report on Monday, August 18th. Wall Street Zen upgraded Applied Digital from a "sell" rating to a "hold" rating in a report on Saturday, October 11th. Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Thursday, October 9th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $22.10.

Applied Digital Trading Down 6.6%

The firm has a market cap of $9.58 billion, a PE ratio of -30.30 and a beta of 6.77. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.29. The business has a fifty day moving average price of $20.64 and a 200 day moving average price of $12.63.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts' consensus estimates of ($0.11) by $0.08. The business had revenue of $38.01 million for the quarter, compared to the consensus estimate of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.The business's revenue for the quarter was up 84.3% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.15) EPS. Analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Buying and Selling

In related news, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the transaction, the chief financial officer owned 201,800 shares in the company, valued at $3,079,468. This trade represents a 27.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Richard N. Nottenburg sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.26, for a total value of $305,200.00. Following the transaction, the director owned 297,987 shares in the company, valued at $4,547,281.62. This represents a 6.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 506,250 shares of company stock worth $7,713,675 in the last quarter. 9.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC lifted its holdings in shares of Applied Digital by 51.8% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,306 shares of the company's stock valued at $53,000 after buying an additional 787 shares during the period. Flagship Harbor Advisors LLC lifted its holdings in shares of Applied Digital by 6.0% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 15,930 shares of the company's stock valued at $160,000 after buying an additional 900 shares during the period. Quantinno Capital Management LP lifted its holdings in shares of Applied Digital by 1.6% in the 2nd quarter. Quantinno Capital Management LP now owns 68,417 shares of the company's stock valued at $689,000 after buying an additional 1,063 shares during the period. Corebridge Financial Inc. lifted its holdings in shares of Applied Digital by 2.0% in the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock valued at $546,000 after buying an additional 1,899 shares during the period. Finally, Wedbush Securities Inc. lifted its holdings in shares of Applied Digital by 14.8% in the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock valued at $87,000 after buying an additional 2,000 shares during the period. 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.

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