Applied Digital (NASDAQ:APLD) Shares Down 5.4% – What’s Next?

Applied Digital Co. (NASDAQ:APLD) fell 5.4% during mid-day trading on Tuesday . The company traded as low as $9.86 and last traded at $10.10. 6,176,113 shares traded hands during trading, a decline of 22% from the average session volume of 7,878,003 shares. The stock had previously closed at $10.68.

Analyst Ratings Changes

APLD has been the subject of a number of recent analyst reports. HC Wainwright lifted their price objective on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a report on Wednesday, October 16th. Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Friday, November 1st. B. Riley increased their price target on Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Friday, September 13th. Lake Street Capital raised their price objective on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, Roth Mkm reaffirmed a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research note on Thursday, October 10th. Six research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital presently has a consensus rating of “Buy” and a consensus target price of $10.50.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a market capitalization of $2.08 billion, a PE ratio of -8.26 and a beta of 4.65. The stock’s 50 day moving average is $7.81 and its two-hundred day moving average is $5.92.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share 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 business had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. During the same quarter last year, the business posted ($0.10) earnings per share. The business’s quarterly revenue was up 67.2% compared to the same quarter last year. On average, equities analysts anticipate that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, October 17th. The stock was sold at an average price of $8.01, for a total value of $80,100.00. Following the completion of the sale, the director now directly owns 208,506 shares in the company, valued at $1,670,133.06. This represents a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 80,000 shares of the stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the completion of the sale, the director now directly owns 433,686 shares of the company’s stock, valued at approximately $3,196,265.82. This represents a 15.57 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 119,369 shares of company stock worth $870,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Trading of Applied Digital

Large investors have recently added to or reduced their stakes in the stock. Headlands Technologies LLC raised its holdings in shares of Applied Digital by 381.8% during the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after acquiring an additional 6,933 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Applied Digital during the third quarter worth about $59,000. ARS Investment Partners LLC purchased a new position in Applied Digital during the second quarter worth about $60,000. Beacon Harbor Wealth Advisors Inc. acquired a new position in Applied Digital in the 3rd quarter valued at about $83,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Applied Digital in the 3rd quarter valued at approximately $88,000. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Digital

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.