Applied Digital (NASDAQ:APLD) Shares Down 2.8% - Here's Why

Shares of Applied Digital Co. (NASDAQ:APLD - Get Free Report) traded down 2.8% on Tuesday . The company traded as low as $6.43 and last traded at $6.63. 11,388,844 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 29,997,936 shares. The stock had previously closed at $6.82.

Analyst Upgrades and Downgrades

APLD has been the subject of several research analyst reports. Compass Point began coverage on Applied Digital in a research report on Tuesday, January 28th. They set a "buy" rating and a $10.00 target price for the company. JMP Securities started coverage on shares of Applied Digital in a report on Thursday. They set a "market outperform" rating and a $12.00 price objective for the company. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective for the company in a research report on Thursday. HC Wainwright dropped their target price on shares of Applied Digital from $12.00 to $7.00 and set a "buy" rating on the stock in a research note on Tuesday, April 15th. Finally, Cantor Fitzgerald decreased their price target on shares of Applied Digital from $14.00 to $7.00 and set an "overweight" rating for the company in a research note on Tuesday, April 15th. Ten analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Applied Digital currently has an average rating of "Buy" and an average price target of $10.91.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market cap of $1.65 billion, a P/E ratio of -4.25 and a beta of 5.98. The firm's fifty day moving average price is $5.56 and its 200 day moving average price is $7.41.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its quarterly earnings data on Monday, April 14th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.05). The business had revenue of $52.92 million for the quarter, compared to analysts' expectations of $62.91 million. Applied Digital had a negative net margin of 127.86% and a negative return on equity of 117.67%. During the same period in the previous year, the business earned ($0.24) earnings per share. Sell-side analysts expect that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity

In related news, Director Rachel H. Lee sold 24,212 shares of the company'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 completion of the sale, the director now directly owns 83,613 shares in the company, valued at $585,291. This represents a 22.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 11.81% of the company's stock.

Institutional Investors Weigh In On Applied Digital

A number of hedge funds have recently made changes to their positions in the stock. Vontobel Holding Ltd. lifted its stake in shares of Applied Digital by 9.8% during the 4th quarter. Vontobel Holding Ltd. now owns 16,735 shares of the company's stock worth $128,000 after purchasing an additional 1,500 shares during the last quarter. Nisa Investment Advisors LLC lifted its stake in shares of Applied Digital by 16.8% during the 4th quarter. Nisa Investment Advisors LLC now owns 11,774 shares of the company's stock worth $90,000 after purchasing an additional 1,692 shares during the last quarter. Corebridge Financial Inc. lifted its stake in shares of Applied Digital by 2.0% during the 1st quarter. Corebridge Financial Inc. now owns 97,224 shares of the company's stock worth $546,000 after purchasing an additional 1,899 shares during the last quarter. Wilmington Savings Fund Society FSB lifted its stake in shares of Applied Digital by 100.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company's stock worth $31,000 after purchasing an additional 2,000 shares during the last quarter. Finally, Wedbush Securities Inc. lifted its stake in shares of Applied Digital by 14.8% during the 1st quarter. Wedbush Securities Inc. now owns 15,500 shares of the company's stock worth $87,000 after purchasing an additional 2,000 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other 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.