Applied Digital (NASDAQ:APLD) Trading Down 5.5% – Here’s What Happened

Shares of Applied Digital Corporation (NASDAQ:APLD) were down 5.5% during mid-day trading on Tuesday . The company traded as low as $29.95 and last traded at $31.06. Approximately 28,613,421 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 36,313,875 shares. The stock had previously closed at $32.87.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on APLD shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research note on Wednesday, October 8th. Northland Securities increased their price target on Applied Digital to $40.00 and gave the stock an “outperform” rating in a research note on Friday, October 10th. Lake Street Capital increased their price target on Applied Digital from $18.00 to $37.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. Craig Hallum raised their price objective on Applied Digital to $39.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Finally, Citigroup restated an “outperform” rating on shares of Applied Digital in a research report on Thursday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $26.20.

Applied Digital Trading Down 5.5%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The stock’s fifty day moving average is $25.10 and its 200 day moving average is $15.21. The stock has a market cap of $8.69 billion, a P/E ratio of -27.49 and a beta of 6.77.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The firm had revenue of $38.01 million during the quarter, compared to the consensus estimate of $52.25 million. During the same quarter last year, the firm earned ($0.15) EPS. The firm’s revenue for the quarter was up 84.3% compared to the same quarter last year. As a group, equities research analysts predict that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 34,375 shares of the stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $33.23, for a total value of $1,142,281.25. Following the completion of the transaction, the director owned 263,612 shares of the company’s stock, valued at approximately $8,759,826.76. This trade represents a 11.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the firm’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $34.08, for a total transaction of $3,408,000.00. Following the completion of the sale, the chief financial officer directly owned 158,912 shares of the company’s stock, valued at approximately $5,415,720.96. The trade was a 38.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 834,285 shares of company stock worth $19,090,154 in the last quarter. Company insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

Several institutional investors have recently added to or reduced their stakes in the company. Hood River Capital Management LLC lifted its stake in Applied Digital by 2.8% in the second quarter. Hood River Capital Management LLC now owns 21,859,031 shares of the company’s stock worth $220,120,000 after purchasing an additional 592,314 shares during the last quarter. Vanguard Group Inc. lifted its stake in Applied Digital by 5.7% in the first quarter. Vanguard Group Inc. now owns 13,491,013 shares of the company’s stock worth $75,819,000 after purchasing an additional 730,978 shares during the last quarter. Situational Awareness LP lifted its stake in Applied Digital by 63.3% in the second quarter. Situational Awareness LP now owns 6,591,800 shares of the company’s stock worth $66,379,000 after purchasing an additional 2,556,200 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Applied Digital by 24,356.8% in the second quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock worth $52,561,000 after purchasing an additional 5,198,223 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Applied Digital by 24.0% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,661,296 shares of the company’s stock worth $26,799,000 after purchasing an additional 514,896 shares during the last quarter. Institutional investors 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.