Applied Digital (NASDAQ:APLD) Stock Price Down 3.9% - What's Next?

Key Points

• Applied Digital's stock price decreased by 3.9% on Friday, trading as low as $20.89, with a volume decline of 38% from its average trading session.
• Several analysts have issued new price targets for Applied Digital, with JMP Securities raising their target from $12.00 to $18.00, and the company currently holds a consensus rating of "Buy" with an average target price of $15.64.
• Insiders, including Director Richard N. Nottenburg and CEO Wes Cummins, have sold a significant number of shares recently, indicating potential changes in their positions in the company.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) fell 3.9% on Friday . The stock traded as low as $20.89 and last traded at $21.71. 22,600,194 shares were traded during trading, a decline of 38% from the average session volume of 36,534,895 shares. The stock had previously closed at $22.59.

Analysts Set New Price Targets

APLD has been the topic of a number of research analyst reports. JMP Securities boosted their price target on shares of Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research note on Tuesday, June 3rd. Compass Point assumed coverage on Applied Digital in a research report on Monday, September 15th. They issued a "buy" rating on the stock. Citigroup restated an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. HC Wainwright lifted their price objective on Applied Digital from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Finally, Lake Street Capital increased their target price on Applied Digital from $14.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating and twelve have given a Buy rating to the company's stock. According to data from MarketBeat.com, Applied Digital has a consensus rating of "Buy" and an average target price of $15.64.

Applied Digital Stock Performance

The firm has a market capitalization of $5.85 billion, a price-to-earnings ratio of -19.92 and a beta of 6.64. The firm has a 50 day moving average price of $15.57 and a 200-day moving average price of $10.34. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.77 and a quick ratio of 0.77.

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 for the quarter, hitting the consensus estimate of ($0.12). The company had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. Applied Digital had a negative return on equity of 50.03% and a negative net margin of 107.22%.Applied Digital's revenue was up 41.3% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.14) EPS. As a group, sell-side analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $305,200.00. Following the completion of the sale, the director directly owned 297,987 shares of the company's stock, valued at approximately $4,547,281.62. The trade was a 6.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Wes Cummins sold 400,000 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $6,104,000.00. Following the completion of the sale, the chief executive officer owned 2,659,379 shares in the company, valued at approximately $40,582,123.54. This represents a 13.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock valued at $7,713,675 over the last 90 days. 11.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. increased its stake in Applied Digital by 48.4% in the second 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 last quarter. 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 purchased a new position in shares of Applied Digital in the 2nd quarter valued at $383,000. Advisory Services Network LLC purchased a new position in shares of Applied Digital in the 2nd quarter valued at $894,000. Finally, Tactive Advisors LLC acquired a new stake in Applied Digital during the 2nd quarter worth $1,695,000. 65.67% of the stock is owned by institutional investors and hedge funds.

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.

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