Applied Digital (NASDAQ:APLD) Shares Down 1.2% – Here’s Why

Applied Digital Co. (NASDAQ:APLD) shares dropped 1.2% on Wednesday . The company traded as low as $7.22 and last traded at $7.50. Approximately 5,713,151 shares traded hands during trading, a decline of 75% from the average daily volume of 23,204,156 shares. The stock had previously closed at $7.59.

Analysts Set New Price Targets

A number of research firms have recently weighed in on APLD. Cantor Fitzgerald cut their price target on Applied Digital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 15th. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a research note on Wednesday, January 15th. Northland Securities lifted their price objective on Applied Digital from $12.00 to $20.00 and gave the company an “outperform” rating in a report on Tuesday, February 4th. Compass Point assumed coverage on shares of Applied Digital in a research note on Tuesday, January 28th. They set a “buy” rating and a $10.00 price target for the company. Finally, HC Wainwright boosted their price target on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Wednesday, January 15th. Nine research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $12.11.

Applied Digital Trading Up 0.3 %

The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of -4.40 and a beta of 4.77. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.77 and a quick ratio of 0.77. The business’s 50-day moving average price is $8.51 and its two-hundred day moving average price is $7.24.

Applied Digital (NASDAQ:APLD) last released its earnings results on Tuesday, January 14th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.08. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The firm had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. During the same period in the prior year, the company posted ($0.05) EPS. The company’s revenue was up 51.3% compared to the same quarter last year. Research analysts predict that Applied Digital Co. will post -0.96 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Wes Cummins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the completion of the transaction, the chief executive officer now owns 3,875,955 shares of the company’s stock, valued at $35,658,786. This represents a 4.91 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Nottenburg sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the sale, the director now owns 342,923 shares in the company, valued at $3,034,868.55. This represents a 5.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 270,000 shares of company stock worth $2,477,000 over the last ninety days. Corporate insiders own 11.81% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Hedge funds have recently modified their holdings of the company. Wilmington Savings Fund Society FSB increased its holdings in Applied Digital by 100.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,000 shares of the company’s stock worth $31,000 after purchasing an additional 2,000 shares in the last quarter. R Squared Ltd acquired a new position in shares of Applied Digital in the fourth quarter valued at approximately $36,000. US Bancorp DE bought a new position in Applied Digital in the 4th quarter valued at approximately $37,000. Jones Financial Companies Lllp acquired a new stake in Applied Digital during the 4th quarter worth approximately $39,000. Finally, Spire Wealth Management bought a new stake in Applied Digital during the 4th quarter worth approximately $43,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.