Applied Digital (NASDAQ:APLD) Stock Price Down 3% - What's Next?

Key Points

• Applied Digital shares fell 3% to $26.25 in Friday trading, with volume below the stock’s average; the price remains below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $60.88, though targets range from $22 to $83.
• The company’s revenue surged 406% year over year to $240.35 million, but it missed quarterly earnings expectations and remained unprofitable; an insider also sold 75,000 shares, while institutional investors own 65.67% of the stock.

Applied Digital Corporation (NASDAQ:APLD - Get Free Report)'s stock price fell 3% during trading on Friday. The company traded as low as $25.96 and last traded at $26.25. 13,904,002 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 22,682,010 shares. The stock had previously closed at $27.06.

Wall Street Analysts Forecast Growth

APLD has been the subject of a number of recent research reports. Rothschild & Co Redburn set a $22.00 target price on Applied Digital and gave the stock a "neutral" rating in a report on Monday. Wells Fargo & Company began coverage on shares of Applied Digital in a research report on Thursday, September 17th. They set an "overweight" rating and a $50.00 price objective on the stock. Needham & Company LLC reissued a "buy" rating and issued a $83.00 target price on shares of Applied Digital in a research note on Tuesday, July 28th. Northland Securities set a $82.00 price target on shares of Applied Digital and gave the stock an "outperform" rating in a research note on Wednesday, June 17th. Finally, B. Riley Financial reiterated a "buy" rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $60.88.

Applied Digital Stock Down 3.0%

The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The stock has a market cap of $7.65 billion, a P/E ratio of -29.49 and a beta of 5.72. The company's 50 day moving average price is $27.62 and its two-hundred day moving average price is $32.70.

Applied Digital (NASDAQ:APLD - Get Free Report) last issued its earnings results 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). The firm had revenue of $240.35 million during the quarter, compared to analysts' expectations of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.Applied Digital's quarterly revenue was up 406.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.24) earnings per share. As a group, research analysts expect that Applied Digital Corporation will post -1.09 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in APLD. Situational Awareness LP boosted its holdings in shares of Applied Digital by 18.9% in the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company's stock valued at $319,978,000 after buying an additional 2,139,378 shares in the last quarter. Equitec Proprietary Markets LLC acquired a new stake in shares of Applied Digital during the 2nd quarter valued at about $312,349,000. Geode Capital Management LLC boosted its position in Applied Digital by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company's stock worth $154,151,000 after purchasing an additional 304,228 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in Applied Digital in the fourth quarter valued at approximately $29,510,000. Finally, Sei Investments Co. increased its position in shares of Applied Digital by 33.0% in the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company's stock valued at $25,964,000 after buying an additional 271,618 shares in the last quarter. Institutional investors own 65.67% of the company's stock.

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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