Applied Digital (NASDAQ:APLD) Trading Down 8.3% - Here's Why

Key Points

• Applied Digital shares fell 8.3% on Tuesday, trading as low as $30.24 after closing at $33.50, with trading volume below its recent average.
• Recent analyst sentiment remains mostly positive despite the pullback: multiple firms raised price targets, and the stock now carries a Moderate Buy consensus with an average target price of $70.56.
• The company’s latest earnings showed strong revenue growth but continued losses, as quarterly revenue rose 139.3% year over year to $108.55 million while EPS missed expectations and insiders recently sold shares.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s share price fell 8.3% on Tuesday . The company traded as low as $30.24 and last traded at $30.71. Approximately 15,293,534 shares changed hands during trading, a decline of 39% from the average daily volume of 25,021,479 shares. The stock had previously closed at $33.50.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Northland Securities set a $82.00 price objective on Applied Digital and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Citizens Jmp lifted their target price on Applied Digital from $40.00 to $60.00 and gave the stock a "market outperform" rating in a report on Thursday, May 21st. Craig Hallum boosted their price target on Applied Digital from $75.00 to $79.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a report on Friday, April 24th. Finally, Wall Street Zen downgraded shares of Applied Digital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Three 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 stock currently has a consensus rating of "Moderate Buy" and an average target price of $70.56.

Applied Digital Stock Down 8.3%

The stock has a market cap of $8.78 billion, a price-to-earnings ratio of -41.50 and a beta of 5.67. The stock has a 50 day simple moving average of $41.77 and a 200 day simple moving average of $34.22. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.65.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its 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). The firm had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.Applied Digital's revenue for the quarter was up 139.3% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.08) earnings per share. As a group, analysts expect that Applied Digital Corporation will post -0.7 earnings per share for the current fiscal year.

Insider Activity

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the completion of the transaction, the director owned 208,378 shares in the company, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. This represents a 5.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC grew its holdings in Applied Digital by 28.5% during the second quarter. GAMMA Investing LLC now owns 2,092 shares of the company's stock worth $78,000 after buying an additional 464 shares in the last quarter. Parallel Advisors LLC increased its stake in Applied Digital by 126.1% in the 1st quarter. Parallel Advisors LLC now owns 2,614 shares of the company's stock valued at $62,000 after buying an additional 1,458 shares during the last quarter. Vestor Capital LLC bought a new position in shares of Applied Digital during the 1st quarter worth approximately $98,000. Western Wealth Management LLC bought a new position in shares of Applied Digital during the 1st quarter worth approximately $87,000. Finally, Janus Henderson Group PLC boosted its stake in shares of Applied Digital by 318.5% in the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company's stock worth $18,638,000 after buying an additional 597,548 shares during the last quarter. Hedge funds and other 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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