Applied Digital (NASDAQ:APLD) Trading Down 3.5% - Here's Why

Key Points

• Applied Digital's stock dropped 3.5% to $15.42, with a trading volume that was 79% lower than its average daily volume.
• Analyst opinions are largely positive, with multiple firms upgrading their ratings and target prices, suggesting a consensus "Buy" rating with an average price target of $15.64.
• The company's recent quarterly earnings showed revenue of $38.01 million, which fell short of analyst expectations, although this represented a 41.3% year-over-year increase.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price traded down 3.5% during trading on Tuesday . The company traded as low as $14.46 and last traded at $15.42. 7,905,129 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 37,359,234 shares. The stock had previously closed at $15.98.

Analyst Ratings Changes

APLD has been the topic of a number of recent research reports. Needham & Company LLC raised their price target on shares of Applied Digital from $12.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. B. Riley lifted their price objective on shares of Applied Digital from $8.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. HC Wainwright raised their target price on Applied Digital from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Lake Street Capital lifted their price target on shares of Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, Citigroup restated an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the company's stock. According to MarketBeat, Applied Digital has a consensus rating of "Buy" and an average target price of $15.64.

Applied Digital Stock Performance

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.36. The firm has a 50-day moving average of $12.75 and a 200 day moving average of $9.19. The stock has a market capitalization of $3.75 billion, a P/E ratio of -13.15 and a beta of 6.64.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.12). Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%.The firm had revenue of $38.01 million during the quarter, compared to analyst estimates of $42.86 million. During the same period in the prior year, the company posted ($0.14) earnings per share. The business's revenue for the quarter was up 41.3% compared to the same quarter last year. Research analysts anticipate that Applied Digital Corporation will post -0.96 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 11,250 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $14.22, for a total transaction of $159,975.00. Following the transaction, the director owned 317,987 shares in the company, valued at $4,521,775.14. This represents a 3.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 11.81% of the company's stock.

Hedge Funds Weigh In On Applied Digital

Large investors have recently made changes to their positions in the company. Osaic Holdings Inc. lifted its position in Applied Digital by 48.4% during the 2nd quarter. Osaic Holdings Inc. now owns 40,734 shares of the company's stock valued at $410,000 after purchasing an additional 13,294 shares during the period. B. Riley Wealth Advisors Inc. acquired a new position in shares of Applied Digital in the 2nd quarter valued at $2,062,000. Marex Group plc acquired a new position in shares of Applied Digital in the 2nd quarter valued at $383,000. Advisory Services Network LLC bought a new position in shares of Applied Digital in the 2nd quarter worth $894,000. Finally, Tactive Advisors LLC acquired a new stake in shares of Applied Digital during the second quarter worth $1,695,000. Institutional investors and hedge funds 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.