Applied Digital (NASDAQ:APLD) Trading Down 8.6% - Here's What Happened

Key Points

• Applied Digital shares fell 8.6% to $28.51 in mid-day trading, with volume below its average. The stock’s market capitalization is approximately $8.31 billion.
• The company reported a quarterly loss of $0.39 per share, missing the $0.09 consensus estimate, despite revenue rising 406.3% year over year to $240.35 million.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $68.15, although one analyst downgraded the stock to “Strong Sell.”

Shares of Applied Digital Corporation (NASDAQ:APLD - Get Free Report) were down 8.6% during mid-day trading on Tuesday . The stock traded as low as $28.10 and last traded at $28.51. 17,548,882 shares were traded during trading, a decline of 27% from the average daily volume of 23,912,201 shares. The stock had previously closed at $31.18.

Wall Street Analyst Weigh In

A number of equities analysts have commented on APLD shares. Lucid Cap Mkts upgraded shares of Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Needham & Company LLC reiterated a "buy" rating and issued a $83.00 target price on shares of Applied Digital in a research note on Tuesday, July 28th. Wall Street Zen cut shares of Applied Digital from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 8th. Morgan Stanley boosted their target price on Applied Digital from $36.50 to $37.50 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Applied Digital in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Applied Digital presently has an average rating of "Moderate Buy" and an average target price of $68.15.

Applied Digital Trading Down 8.6%

The company's 50-day moving average is $33.83 and its 200-day moving average is $33.81. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The firm has a market cap of $8.31 billion, a price-to-earnings ratio of -32.03 and a beta of 5.75.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The company had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same quarter in the previous year, the business posted ($0.24) EPS. The company's revenue was up 406.3% compared to the same quarter last year. On average, research analysts predict that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Activity at Applied Digital

In other news, Director Richard N. Nottenburg sold 75,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director directly owned 133,378 shares of the company's stock, valued at $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in Applied Digital by 36.4% in the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company's stock valued at $592,601,000 after buying an additional 6,445,908 shares during the last quarter. Situational Awareness LP raised its position in shares of Applied Digital by 18.9% during the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock worth $319,978,000 after acquiring an additional 2,139,378 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Applied Digital by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock valued at $154,151,000 after acquiring an additional 304,228 shares during the period. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the fourth quarter valued at $138,380,000. Finally, BNP Paribas Financial Markets boosted its holdings in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company's stock valued at $52,561,000 after acquiring an additional 5,198,223 shares during the last quarter. 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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