Applied Digital (NASDAQ:APLD) Stock Price Down 4.2% - Here's Why

Key Points

• Applied Digital shares fell 4.2% on Friday, trading as low as $37.96 amid heavy volume of 47.2 million shares, well above its average session volume.
• Analyst sentiment remains mixed but generally constructive: multiple firms recently reiterated or raised targets, and the stock currently carries a Moderate Buy consensus with an average price target of $70.56.
• The company’s latest earnings showed better-than-expected revenue of $108.55 million, but it posted a wider-than-expected loss of $0.36 per share and remains unprofitable, while insiders have also been selling shares.

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) fell 4.2% during mid-day trading on Friday . The company traded as low as $37.96 and last traded at $39.2180. 47,201,363 shares changed hands during trading, an increase of 86% from the average session volume of 25,315,219 shares. The stock had previously closed at $40.95.

Analysts Set New Price Targets

APLD has been the subject of a number of recent research reports. Roth Mkm reiterated a "buy" rating and issued a $65.00 target price on shares of Applied Digital in a report on Thursday, April 23rd. Zacks Research lowered shares of Applied Digital from a "hold" rating to a "strong sell" rating in a research note on Monday, June 8th. Citigroup reiterated a "market outperform" rating on shares of Applied Digital in a research report on Tuesday, June 9th. Lake Street Capital raised their target price on shares of Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Finally, Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research note on Wednesday, May 27th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $70.56.

Applied Digital Price Performance

The stock has a market capitalization of $11.21 billion, a PE ratio of -53.00 and a beta of 5.69. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock's 50 day moving average price is $41.27 and its 200-day moving average price is $33.88.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to analysts' expectations of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company's quarterly revenue was up 139.3% on a year-over-year basis. During the same period in the prior year, the business earned ($0.08) EPS. As a group, equities analysts forecast that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Buying and Selling

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the company's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the sale, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. The trade was a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,000 shares of company stock valued at $1,182,175 in the last quarter. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Newbridge Financial Services Group Inc. raised its holdings in shares of Applied Digital by 8.6% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company's stock valued at $93,000 after purchasing an additional 300 shares in the last quarter. Concurrent Investment Advisors LLC boosted its stake in shares of Applied Digital by 1.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company's stock valued at $523,000 after purchasing an additional 318 shares in the last quarter. Brookstone Capital Management increased its holdings in Applied Digital by 3.6% during the fourth quarter. Brookstone Capital Management now owns 9,275 shares of the company's stock valued at $227,000 after buying an additional 321 shares during the period. Independent Advisor Alliance raised its stake in Applied Digital by 4.6% in the fourth quarter. Independent Advisor Alliance now owns 9,215 shares of the company's stock worth $226,000 after buying an additional 407 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its stake in Applied Digital by 7.4% in the third quarter. PNC Financial Services Group Inc. now owns 5,951 shares of the company's stock worth $137,000 after buying an additional 408 shares in the last quarter. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

Applied Digital NASDAQ: APLD is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital's modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.