Applied Digital (NASDAQ:APLD) Trading Down 1.2% - What's Next?

Key Points

• Applied Digital shares fell 1.2% in midday trading, with volume below average as the stock moved from a prior close of $37.77 to around $37.30.
• Analyst sentiment is mixed but still broadly positive: while some firms downgraded the stock, Needham and Lake Street raised their price targets, and the consensus rating remains Moderate Buy with an average target of $70.56.
• The company’s latest earnings showed mixed results—revenue jumped 139.3% year over year to $108.55 million, but EPS missed estimates and losses remained significant.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price fell 1.2% during mid-day trading on Tuesday . The company traded as low as $37.18 and last traded at $37.30. Approximately 16,994,098 shares were traded during trading, a decline of 33% from the average session volume of 25,251,178 shares. The stock had previously closed at $37.77.

Analysts Set New Price Targets

Several brokerages recently weighed in on APLD. Zacks Research cut Applied Digital from a "hold" rating to a "strong sell" rating in a report on Monday, June 8th. Wall Street Zen cut Applied Digital from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Needham & Company LLC boosted their price objective on Applied Digital from $66.00 to $83.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Compass Point reissued a "buy" rating and set a $70.00 price objective on shares of Applied Digital in a research note on Friday, May 22nd. Finally, 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. Three investment 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's stock. According to data from MarketBeat.com, Applied Digital presently has an average rating of "Moderate Buy" and a consensus target price of $70.56.

Applied Digital Trading Down 1.2%

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 company has a market capitalization of $10.66 billion, a PE ratio of -50.40 and a beta of 5.69. The stock's fifty day moving average price is $41.59 and its two-hundred day moving average price is $33.97.

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

Insider Buying and Selling

In other news, Director Richard N. Nottenburg sold 12,500 shares of the firm's stock in a transaction dated Thursday, April 30th. The shares were 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 of the company's stock, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the sale, 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. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is owned by corporate insiders.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC grew its holdings in shares of Applied Digital by 84.8% during the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company's stock worth $106,000 after acquiring an additional 8,692 shares during the period. NewEdge Advisors LLC lifted its stake in shares of Applied Digital by 239.1% in the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company's stock valued at $187,000 after purchasing an additional 23,457 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of Applied Digital by 113.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company's stock valued at $37,000 after purchasing an additional 3,542 shares during the period. Strs Ohio bought a new stake in shares of Applied Digital during the first quarter valued at approximately $71,000. Finally, Cetera Investment Advisers boosted its position in shares of Applied Digital by 61.0% during the second quarter. Cetera Investment Advisers now owns 61,656 shares of the company's stock valued at $621,000 after purchasing an additional 23,360 shares in the last quarter. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Digital

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.

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