Applied Digital (NASDAQ:APLD) Stock Price Down 4.9% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) traded down 4.9% during mid-day trading on Friday . The company traded as low as $8.01 and last traded at $8.28. 5,409,452 shares were traded during trading, a decline of 62% from the average session volume of 14,062,823 shares. The stock had previously closed at $8.71.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Craig Hallum upped their target price on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Needham & Company LLC reissued a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research report on Friday, November 1st. HC Wainwright raised their price objective on Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research report on Wednesday, October 16th. Cantor Fitzgerald initiated coverage on shares of Applied Digital in a research report on Friday, December 20th. They set an “overweight” rating and a $15.00 price target for the company. Finally, Lake Street Capital raised their price target on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Seven research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $11.14.

Applied Digital Stock Performance

The firm’s 50-day simple moving average is $8.66 and its two-hundred day simple moving average is $6.91. The company has a market cap of $1.75 billion, a PE ratio of -7.09 and a beta of 4.78. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The firm had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. During the same period in the prior year, the firm earned ($0.10) EPS. The firm’s revenue was up 67.2% on a year-over-year basis. As a group, research analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the transaction, the director now owns 208,506 shares of the company’s stock, valued at approximately $1,670,133.06. The trade was a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 359,369 shares of company stock worth $3,115,161 over the last three months. 11.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. raised its position in Applied Digital by 18.4% during the third quarter. JPMorgan Chase & Co. now owns 56,355 shares of the company’s stock worth $465,000 after acquiring an additional 8,774 shares during the period. Tidal Investments LLC acquired a new stake in shares of Applied Digital in the third quarter valued at approximately $95,000. Virtu Financial LLC purchased a new position in shares of Applied Digital during the 3rd quarter worth $2,030,000. Geode Capital Management LLC boosted its holdings in Applied Digital by 48.7% in the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock valued at $25,258,000 after purchasing an additional 1,002,862 shares during the last quarter. Finally, Barclays PLC lifted its holdings in Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock valued at $4,014,000 after acquiring an additional 428,428 shares during the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

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.