Applied Digital (NASDAQ:APLD) Trading Down 2.5% - What's Next?

Key Points

• Applied Digital Corporation's stock price fell by 2.5%, trading at $14.42 amid significant decreased trading volume of 73% compared to its average session.
• Several analysts have upgraded their price targets for Applied Digital, with JMP Securities increasing it from $12.00 to $18.00 and B. Riley raising it from $8.00 to $15.00.
• The company reported revenues of $38.01 million for the last quarter, which is a 41.3% increase year-over-year, although it fell short of the consensus estimate.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price traded down 2.5% on Thursday . The company traded as low as $14.40 and last traded at $14.42. 10,244,186 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 38,467,109 shares. The stock had previously closed at $14.79.

Analysts Set New Price Targets

A number of research firms recently commented on APLD. Citigroup reissued an "outperform" rating on shares of Applied Digital in a report on Tuesday, June 3rd. JMP Securities boosted their target price on shares of Applied Digital from $12.00 to $18.00 and gave the company a "market outperform" rating in a research note on Tuesday, June 3rd. B. Riley upped their price target on shares of Applied Digital from $8.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th. Compass Point raised 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. Finally, HC Wainwright boosted their target price on Applied Digital from $12.00 to $15.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Twelve equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Applied Digital currently has a consensus rating of "Buy" and a consensus price target of $14.18.

Applied Digital Price Performance

The firm has a market capitalization of $3.72 billion, a P/E ratio of -13.06 and a beta of 6.17. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 1.36. The business's fifty day moving average is $10.92 and its 200 day moving average is $8.13.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported ($0.12) EPS for the quarter, hitting the consensus estimate of ($0.12). Applied Digital had a negative net margin of 107.22% and a negative return on equity of 50.03%. The firm had revenue of $38.01 million for the quarter, compared to the consensus estimate of $42.86 million. During the same period in the prior year, the business posted ($0.14) earnings per share. The business's quarterly revenue was up 41.3% on a year-over-year basis. As a group, analysts forecast that Applied Digital Corporation will post -0.96 EPS for the current year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Rachel H. Lee sold 24,212 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $7.00, for a total value of $169,484.00. Following the completion of the transaction, the director owned 83,613 shares of the company's stock, valued at $585,291. This represents a 22.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 11.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Applied Digital by 26.6% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 144,993 shares of the company's stock worth $1,460,000 after acquiring an additional 30,507 shares during the last quarter. Fox Run Management L.L.C. bought a new stake in shares of Applied Digital in the second quarter worth about $382,000. Atlantic Union Bankshares Corp bought a new position in shares of Applied Digital during the 2nd quarter valued at about $25,000. Hunter Associates Investment Management LLC increased its stake in Applied Digital by 9.9% during the 2nd quarter. Hunter Associates Investment Management LLC now owns 589,093 shares of the company's stock worth $5,933,000 after purchasing an additional 53,172 shares in the last quarter. Finally, Uniting Wealth Partners LLC bought a new position in Applied Digital in the second quarter valued at approximately $963,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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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