Applied Digital (NASDAQ:APLD) Sets New 52-Week Low – What’s Next?

Applied Digital Corporation (NASDAQ:APLD)’s stock price reached a new 52-week low on Monday. The stock traded as low as $17.53 and last traded at $17.6970, with a volume of 2,196,278 shares trading hands. The stock had previously closed at $18.25.

Analyst Ratings Changes

APLD has been the subject of a number of recent research reports. Needham & Company LLC dropped their price objective on shares of Applied Digital from $83.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the company a “neutral” rating in a research report on Monday, September 21st. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Thursday, October 8th. Wells Fargo & Company restated an “overweight” rating and issued a $55.00 target price (up from $50.00) on shares of Applied Digital in a report on Thursday, October 8th. Finally, B. Riley Financial reaffirmed a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $59.75.

Applied Digital Trading Up 0.7%

The stock has a market capitalization of $5.56 billion, a P/E ratio of -11.10 and a beta of 5.99. The business has a 50 day simple moving average of $25.02 and a 200-day simple moving average of $32.18. The company has a debt-to-equity ratio of 3.90, a quick ratio of 2.56 and a current ratio of 2.56.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The company had revenue of $300.39 million during the quarter, compared to analyst estimates of $116.29 million. During the same period in the prior year, the firm earned ($0.03) earnings per share. The business’s quarterly revenue was up 367.8% on a year-over-year basis. On average, analysts predict that Applied Digital Corporation will post -2.17 EPS for the current year.

Insider Transactions at Applied Digital

In other news, Director Richard Nottenburg sold 31,250 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $21.84, for a total value of $682,500.00. Following the sale, the director directly owned 102,128 shares of the company’s stock, valued at approximately $2,230,475.52. This trade represents a 23.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Wes Cummins acquired 55,803 shares of the company’s stock in a transaction dated Friday, October 16th. The shares were bought at an average price of $18.04 per share, for a total transaction of $1,006,686.12. Following the acquisition, the chief executive officer owned 5,874,453 shares in the company, valued at approximately $105,975,132.12. This trade represents a 0.96% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently bought and sold shares of APLD. Whitaker Myers Wealth Managers LTD. bought a new position in Applied Digital during the second quarter worth about $1,841,000. Cambridge Investment Research Advisors Inc. boosted its holdings in Applied Digital by 39.6% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock valued at $5,469,000 after purchasing an additional 41,562 shares during the period. Dimensional Fund Advisors LP bought a new position in Applied Digital during the 1st quarter worth $1,970,000. Situational Awareness LP raised its stake in Applied Digital by 14.1% in the second quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock valued at $574,000 after purchasing an additional 1,906,178 shares in the last quarter. Finally, Engineers Gate Manager LP acquired a new position in Applied Digital during the second quarter valued at approximately $4,350,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

About Applied Digital

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing and artificial intelligence applications. The company provides data-center capacity, hosting services and related infrastructure for customers that require substantial computing power and energy resources.

Its business includes high-performance computing data centers and cloud services intended to support artificial intelligence, machine learning, cryptocurrency mining and other compute-intensive workloads.