Applied Digital (NASDAQ:APLD) Shares Down 4.6% - What's Next?

Key Points

• Applied Digital shares fell 4.6% to about $27.23 in mid-day trading, with volume 41% below the average. The stock remains highly volatile, with a beta of 5.72 and a 200-day moving average of $32.69.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $60.88, although targets range widely and Zacks recently downgraded the stock to “strong sell.”
• The company’s quarterly revenue surged 406.3% year over year to $240.35 million, but it reported an adjusted loss of $0.39 per share versus the $0.09 expected loss. An insider also sold 75,000 shares, reducing that director’s position by 35.99%.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report) dropped 4.6% during mid-day trading on Wednesday . The company traded as low as $27.20 and last traded at $27.23. 13,512,125 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 22,790,334 shares. The stock had previously closed at $28.54.

Wall Street Analyst Weigh In

Several research analysts recently commented on APLD shares. Morgan Stanley increased their target price on shares of Applied Digital from $36.50 to $37.50 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Lake Street Capital boosted their price target on shares of Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. B. Riley Financial restated a "buy" rating and set a $75.00 price objective (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Zacks Research downgraded Applied Digital from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Finally, Citigroup reissued a "market outperform" rating on shares of Applied Digital in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Applied Digital presently has an average rating of "Moderate Buy" and an average price target of $60.88.

Applied Digital Price Performance

The business has a fifty day moving average of $27.64 and a 200 day moving average of $32.69. The firm has a market cap of $7.94 billion, a P/E ratio of -30.60 and a beta of 5.72. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88.

Applied Digital (NASDAQ:APLD - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) 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 business had revenue of $240.35 million during the quarter, compared to the consensus estimate of $96.85 million. During the same quarter in the prior year, the company earned ($0.24) EPS. Applied Digital's quarterly revenue was up 406.3% on a year-over-year basis. On average, sell-side analysts anticipate that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. FNY Investment Advisers LLC bought a new position in Applied Digital in the 2nd quarter valued at about $37,000. Osbon Capital Management LLC acquired a new stake in shares of Applied Digital during the 4th quarter worth approximately $28,000. Bartlett & CO. Wealth Management LLC boosted its position in shares of Applied Digital by 244.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,205 shares of the company's stock worth $29,000 after acquiring an additional 855 shares in the last quarter. Ancora Advisors LLC bought a new position in Applied Digital in the second quarter valued at approximately $56,000. Finally, Creative Financial Designs Inc. ADV increased its stake in Applied Digital by 691.8% in the second quarter. Creative Financial Designs Inc. ADV now owns 1,536 shares of the company's stock valued at $57,000 after acquiring an additional 1,342 shares during the last quarter. 65.67% of the stock is owned by institutional investors.

Applied Digital Company Profile

Applied Digital Corporation NASDAQ: APLD develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company's facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.

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