Applied Digital (NASDAQ:APLD) Trading Down 2.5% – Here’s Why

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 2.5% on Thursday . The company traded as low as $39.80 and last traded at $40.95. 12,794,840 shares were traded during trading, a decline of 49% from the average daily volume of 25,175,760 shares. The stock had previously closed at $41.98.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Citizens Jmp raised their price objective on shares of Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Thursday, May 21st. Northland Securities set a $82.00 target price on shares of Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Compass Point restated a “buy” rating and issued a $70.00 target price on shares of Applied Digital in a research note on Friday, May 22nd. Finally, Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $70.56.

Applied Digital Trading Down 2.5%

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The business’s fifty day simple moving average is $41.08 and its 200 day simple moving average is $33.81. The stock has a market cap of $11.70 billion, a price-to-earnings ratio of -55.34 and a beta of 5.69.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same period last year, the company posted ($0.08) earnings per share. The firm’s revenue for the quarter was up 139.3% on a year-over-year basis. On average, research analysts predict that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Activity

In other Applied Digital news, Director Richard N. Nottenburg sold 12,500 shares of the firm’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares of the company’s stock, valued at $7,207,795.02. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. This represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in Applied Digital by 36.4% during the 4th quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock worth $592,601,000 after buying an additional 6,445,908 shares during the last quarter. Situational Awareness LP lifted its stake in Applied Digital by 18.9% in the first 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 during the last quarter. Geode Capital Management LLC boosted its holdings 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 bought a new position in shares of Applied Digital during the fourth quarter worth about $138,380,000. Finally, BNP Paribas Financial Markets increased its holdings in shares of Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after acquiring an additional 5,198,223 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

About Applied Digital

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.