Applied Digital (NASDAQ:APLD) Shares Down 6.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 6.6% on Monday. The company traded as low as $24.50 and last traded at $24.53. 14,866,387 shares were traded during trading, a decline of 34% from the average daily volume of 22,649,252 shares. The stock had previously closed at $26.25.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Rothschild & Co Redburn set a $22.00 target price on shares of Applied Digital and gave the stock a “neutral” rating in a research note on Monday, September 21st. Wall Street Zen lowered shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research report on Sunday, August 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Craig Hallum increased their price objective on Applied Digital from $75.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Finally, Northland Securities set a $82.00 price objective on Applied Digital and gave the company an “outperform” rating in a research note on Wednesday, June 17th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $60.88.

Applied Digital Trading Down 6.6%

The stock’s 50 day simple moving average is $27.63 and its 200 day simple moving average is $32.69. The firm has a market cap of $7.15 billion, a PE ratio of -27.56 and a beta of 5.72. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data 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). Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. The company had revenue of $240.35 million for the quarter, compared to analysts’ expectations of $96.85 million. During the same quarter last year, the business posted ($0.24) EPS. The business’s quarterly revenue was up 406.3% compared to the same quarter last year. On average, sell-side analysts forecast that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the firm’s stock in a transaction dated 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 sale, the director owned 133,378 shares in the company, valued at $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of APLD. GAMMA Investing LLC grew its stake in shares of Applied Digital by 28.5% during the second quarter. GAMMA Investing LLC now owns 2,092 shares of the company’s stock valued at $78,000 after buying an additional 464 shares during the last quarter. Krilogy Financial LLC increased its holdings in shares of Applied Digital by 4.1% in the second quarter. Krilogy Financial LLC now owns 14,243 shares of the company’s stock worth $531,000 after buying an additional 561 shares during the period. Vermillion Wealth Management Inc. lifted its stake in shares of Applied Digital by 29.4% in the 1st quarter. Vermillion Wealth Management Inc. now owns 2,563 shares of the company’s stock valued at $61,000 after acquiring an additional 583 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in Applied Digital by 4.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock valued at $497,000 after acquiring an additional 596 shares during the period. Finally, Handelsbanken Fonder AB boosted its holdings in Applied Digital by 1.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 71,600 shares of the company’s stock valued at $2,671,000 after acquiring an additional 700 shares during the period. 65.67% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Digital

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.