Applied Digital (NASDAQ:APLD) Trading Down 7.6% – What’s Next?

Applied Digital Co. (NASDAQ:APLD) shares traded down 7.6% on Thursday . The stock traded as low as $8.32 and last traded at $8.70. 14,142,000 shares changed hands during trading, a decline of 11% from the average session volume of 15,866,307 shares. The stock had previously closed at $9.42.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Craig Hallum increased their price target on shares of Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Needham & Company LLC restated a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research report on Friday, November 1st. HC Wainwright increased their target price on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Roth Mkm reiterated a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. Finally, B. Riley raised their target price on shares of Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Seven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $11.14.

Applied Digital Trading Down 7.6 %

The firm has a market cap of $1.84 billion, a PE ratio of -7.44 and a beta of 4.78. 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 50-day simple moving average of $8.58 and a two-hundred day simple moving average of $6.87.

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

Insider Activity

In related news, Director Richard N. Nottenburg sold 80,000 shares of the stock in a transaction on Monday, October 14th. The stock was sold at an average price of $7.37, for a total transaction of $589,600.00. Following the sale, the director now owns 433,686 shares in the company, valued at approximately $3,196,265.82. This represents a 15.57 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of the stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the transaction, the chief executive officer now directly owns 3,875,955 shares in the company, valued at $35,658,786. The trade was a 4.91 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 359,369 shares of company stock valued at $3,115,161 in the last quarter. 11.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the company. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Applied Digital during the third quarter valued at about $59,000. Headlands Technologies LLC boosted its position in Applied Digital by 381.8% during the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after purchasing an additional 6,933 shares in the last quarter. Beacon Harbor Wealth Advisors Inc. bought a new stake in Applied Digital during the third quarter valued at about $83,000. Wealth Enhancement Advisory Services LLC bought a new stake in Applied Digital during the third quarter valued at about $88,000. Finally, Chesapeake Capital Corp IL bought a new stake in Applied Digital during the third quarter valued at about $94,000. Institutional investors 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.