Applied Digital (NASDAQ:APLD) Trading Down 2.3% - Here's Why

Key Points

• Shares fell 2.3% to about $30.09 on the day (intraday low $29.42) with volume of ~15.1M, roughly 44% below the stock's average session volume.
• Applied Digital missed EPS expectations in the latest quarter (‑$0.36 vs. est. ‑$0.13) but posted a revenue beat of $108.6M, up 139.3% year‑over‑year, while remaining unprofitable with negative net margin and ROE.
• Analysts hold a consensus of “Moderate Buy” with an average price target of $42.78 amid mixed ratings, and insiders (including the CEO) have recently sold shares, though institutions own about 65.7% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) shares fell 2.3% during trading on Thursday . The stock traded as low as $29.42 and last traded at $30.09. 15,132,722 shares were traded during mid-day trading, a decline of 44% from the average session volume of 27,009,322 shares. The stock had previously closed at $30.81.

Analyst Ratings Changes

Several brokerages have recently commented on APLD. Northland Securities set a $56.00 target price on Applied Digital in a report on Wednesday, January 28th. Roth Mkm reissued a "buy" rating on shares of Applied Digital in a report on Tuesday, February 17th. Wall Street Zen downgraded Applied Digital from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Citigroup restated an "outperform" rating on shares of Applied Digital in a research report on Wednesday, January 28th. Finally, Arete Research initiated coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They issued a "buy" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $42.78.

Applied Digital Stock Down 2.3%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The firm's 50-day moving average is $28.62 and its two-hundred day moving average is $29.64. The stock has a market cap of $8.60 billion, a P/E ratio of -40.66 and a beta of 7.25.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The company had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. During the same quarter last year, the firm earned ($0.08) EPS. The business's revenue for the quarter was up 139.3% on a year-over-year basis. On average, equities research analysts anticipate that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Buying and Selling at Applied Digital

In other Applied Digital news, CEO Wes Cummins sold 165,000 shares of the company's stock in a transaction on Friday, January 16th. The shares were sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the completion of the sale, the chief executive officer owned 4,176,329 shares in the company, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Chuck Hastings sold 45,987 shares of the company's stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the sale, the director owned 388,372 shares of the company's stock, valued at $14,979,508.04. The trade was a 10.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 9.50% of the company's stock.

Institutional Trading of Applied Digital

Several institutional investors and hedge funds have recently made changes to their positions in APLD. Noble Wealth Management PBC bought a new stake in shares of Applied Digital during the 4th quarter valued at $25,000. Albion Financial Group UT bought a new stake in shares of Applied Digital during the 4th quarter valued at $25,000. Activest Wealth Management bought a new stake in shares of Applied Digital during the 4th quarter valued at $25,000. Ameriflex Group Inc. bought a new stake in shares of Applied Digital during the 4th quarter valued at $25,000. Finally, McMillan Office Inc. bought a new stake in shares of Applied Digital during the 4th quarter valued at $25,000. Institutional investors own 65.67% of the company's stock.

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.

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