Applied Digital (NASDAQ:APLD) Stock Price Down 4.9% - Here's Why

Applied Digital Co. (NASDAQ:APLD - Get Free Report) shares were down 4.9% during trading on Wednesday . The company traded as low as $7.18 and last traded at $7.22. Approximately 7,045,957 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 30,394,775 shares. The stock had previously closed at $7.59.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on APLD shares. JMP Securities started coverage on shares of Applied Digital in a research note on Thursday, May 22nd. They issued a "market outperform" rating and a $12.00 price target on the stock. Needham & Company LLC restated a "buy" rating and set a $10.00 target price on shares of Applied Digital in a research report on Wednesday, April 23rd. Citizens Jmp upgraded shares of Applied Digital to a "strong-buy" rating and set a $12.00 target price on the stock in a research report on Thursday, May 22nd. Northland Securities upped their price target on shares of Applied Digital from $12.00 to $20.00 and gave the stock an "outperform" rating in a report on Tuesday, February 4th. Finally, HC Wainwright cut their price target on shares of Applied Digital from $12.00 to $7.00 and set a "buy" rating on the stock in a report on Tuesday, April 15th. Ten investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, Applied Digital has an average rating of "Buy" and a consensus target price of $10.91.

Applied Digital Trading Down 4.0%

The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 1.22. The firm's 50-day moving average price is $5.54 and its 200 day moving average price is $7.39. The company has a market capitalization of $1.52 billion, a P/E ratio of -3.91 and a beta of 5.98.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Monday, April 14th. The company reported ($0.16) 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 the consensus estimate of $62.91 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. During the same period in the previous year, the firm earned ($0.24) earnings per share. As a group, equities research analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insider Transactions at Applied Digital

In other news, Director Rachel H. Lee sold 24,212 shares of the business's stock in a transaction dated Wednesday, May 21st. The shares were 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 of the company's stock, valued at $585,291. The trade was a 22.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 11.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wells Fargo & Company MN boosted its holdings in Applied Digital by 96.6% during the fourth quarter. Wells Fargo & Company MN now owns 119,963 shares of the company's stock worth $917,000 after purchasing an additional 58,943 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Applied Digital by 39.1% during the fourth quarter. Vanguard Group Inc. now owns 12,760,035 shares of the company's stock worth $97,487,000 after purchasing an additional 3,587,619 shares during the last quarter. Rhumbline Advisers boosted its holdings in Applied Digital by 68.7% during the fourth quarter. Rhumbline Advisers now owns 258,892 shares of the company's stock worth $1,978,000 after purchasing an additional 105,428 shares during the last quarter. Numerai GP LLC purchased a new position in Applied Digital during the fourth quarter worth about $790,000. Finally, Barclays PLC boosted its holdings in Applied Digital by 736.8% during the third quarter. Barclays PLC now owns 486,577 shares of the company's stock worth $4,014,000 after purchasing an additional 428,428 shares during the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

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.