Applied Digital (NASDAQ:APLD) Trading Down 1.5% - What's Next?

Key Points

• Applied Digital Corporation's stock price declined by 1.5%, trading at $16.22 with a significant drop in trading volume, approximately 77% lower than the average.
• Multiple analysts have upgraded APLD's ratings, with a consensus rating of "Buy" and an average price target of $15.64, demonstrating optimism in the stock's future performance.
• In its latest earnings report, the company met expectations with an EPS of (-$0.12) and reported a revenue of $38.01 million, which was below expectations, despite a year-over-year revenue increase of 41.3%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price was down 1.5% on Wednesday . The company traded as low as $16.08 and last traded at $16.22. Approximately 8,570,645 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 37,536,363 shares. The stock had previously closed at $16.47.

Analyst Ratings Changes

APLD has been the subject of a number of research analyst reports. Citizens Jmp raised shares of Applied Digital to a "strong-buy" rating and set a $12.00 price objective for the company in a research report on Thursday, May 22nd. Citigroup restated an "outperform" rating on shares of Applied Digital in a research note on Tuesday, June 3rd. Compass Point upgraded shares of Applied Digital from a "neutral" rating to a "buy" rating and set a $13.00 target price on the stock in a research report on Friday, July 25th. JMP Securities increased their price target on shares of Applied Digital from $12.00 to $18.00 and gave the stock a "market outperform" rating in a research report on Tuesday, June 3rd. Finally, Roth Capital restated a "buy" rating on shares of Applied Digital in a research note on Monday, June 2nd. One research analyst has rated the stock with a Strong Buy rating and twelve have issued a Buy rating to the company. Based on data from MarketBeat, Applied Digital currently has a consensus rating of "Buy" and an average price target of $15.64.

Applied Digital Trading Up 0.3%

The firm has a market cap of $4.32 billion, a price-to-earnings ratio of -15.16 and a beta of 6.17. 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 business's fifty day moving average is $12.01 and its two-hundred day moving average is $8.83.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported ($0.12) earnings per share (EPS) for the quarter, meeting 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 business had revenue of $38.01 million for the quarter, compared to analysts' expectations of $42.86 million. During the same quarter last year, the business earned ($0.14) earnings per share. The firm's quarterly revenue was up 41.3% compared to the same quarter last year. Equities analysts anticipate 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 11,250 shares of the firm's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $14.22, for a total value of $159,975.00. Following the transaction, the director directly owned 317,987 shares in the company, valued at $4,521,775.14. This trade represents a 3.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 11.81% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of APLD. B. Riley Wealth Advisors Inc. bought a new stake in Applied Digital in the second quarter valued at approximately $2,062,000. Marex Group plc bought a new stake in shares of Applied Digital in the 2nd quarter valued at $383,000. Advisory Services Network LLC bought a new stake in shares of Applied Digital in the 2nd quarter valued at $894,000. Tactive Advisors LLC acquired a new stake in Applied Digital during the 2nd quarter worth $1,695,000. Finally, Hollencrest Capital Management bought a new position in Applied Digital during the second quarter worth about $50,000. Institutional investors and hedge funds own 65.67% of the company's stock.

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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