Applied Digital (NASDAQ:APLD) Trading Down 8% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) fell 8% during trading on Monday . The stock traded as low as $37.60 and last traded at $39.14. 19,518,358 shares traded hands during trading, a decline of 26% from the average session volume of 26,285,914 shares. The stock had previously closed at $42.56.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Needham & Company LLC raised their price target on Applied Digital to $51.00 and gave the company a “buy” rating in a research report on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Zacks Research raised Applied Digital from a “strong sell” rating to a “hold” rating in a report on Thursday, May 7th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a research note on Wednesday, January 28th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and set a $40.00 target price on shares of Applied Digital in a report on Thursday, April 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $44.67.

Applied Digital Stock Down 8.0%

The company has a market capitalization of $11.19 billion, a P/E ratio of -52.89 and a beta of 5.69. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The stock’s fifty day moving average is $30.93 and its 200 day moving average is $30.59.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The firm had revenue of $108.55 million during the quarter, compared to the consensus estimate of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.Applied Digital’s revenue was up 139.3% on a year-over-year basis. During the same period last year, the business earned ($0.08) EPS. Research analysts predict that Applied Digital Corporation will post -0.61 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Richard N. Nottenburg sold 12,500 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director directly owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the transaction, the director directly owned 184,859 shares in the company, valued at $6,466,367.82. This trade represents a 5.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 35,000 shares of company stock valued at $1,182,175 in the last ninety days. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Teachers Retirement System of The State of Kentucky purchased a new position in Applied Digital during the third quarter valued at $994,000. Federated Hermes Inc. bought a new stake in shares of Applied Digital in the 3rd quarter worth approximately $3,204,000. AlphaQuest LLC bought a new position in Applied Digital during the 3rd quarter valued at approximately $1,369,000. MRA Advisory Group purchased a new position in Applied Digital during the third quarter valued at $978,000. Finally, Vanguard Group Inc. boosted its holdings in Applied Digital by 23.2% in the third quarter. Vanguard Group Inc. now owns 17,722,174 shares of the company’s stock worth $406,547,000 after acquiring an additional 3,339,062 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.