Applied Digital (NASDAQ:APLD) Trading Down 4.5% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s share price dropped 4.5% on Wednesday . The stock traded as low as $29.80 and last traded at $29.87. 14,609,193 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 24,428,559 shares. The stock had previously closed at $31.27.

Analyst Ratings Changes

Several brokerages have recently commented on APLD. Morgan Stanley started coverage on Applied Digital in a research report on Thursday, July 23rd. They issued a “buy” rating and a $36.50 price objective on the stock. Needham & Company LLC restated a “buy” rating and issued a $83.00 price target on shares of Applied Digital in a research note on Tuesday, July 28th. Craig Hallum increased their price objective on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Citizens Jmp raised their target price on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research note on Thursday, May 21st. Finally, Zacks Research raised shares of Applied Digital from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Applied Digital has a consensus rating of “Buy” and an average price target of $68.05.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 2.88, a current ratio of 4.01 and a quick ratio of 4.01. The company has a market capitalization of $8.71 billion, a P/E ratio of -33.56 and a beta of 5.75. The business has a 50-day moving average of $36.64 and a 200-day moving average of $34.23.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The firm had revenue of $240.35 million for the quarter, compared to analysts’ expectations of $96.85 million. During the same period in the prior year, the firm posted ($0.24) earnings per share. Applied Digital’s revenue for the quarter was up 406.3% on a year-over-year basis. On average, sell-side analysts anticipate that Applied Digital Corporation will post -0.88 EPS for the current year.

Institutional Investors Weigh In On Applied Digital

Institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC grew its position in Applied Digital by 84.8% in the 1st quarter. AQR Capital Management LLC now owns 18,945 shares of the company’s stock valued at $106,000 after acquiring an additional 8,692 shares during the last quarter. NewEdge Advisors LLC increased its stake in Applied Digital by 239.1% in the 1st quarter. NewEdge Advisors LLC now owns 33,267 shares of the company’s stock worth $187,000 after buying an additional 23,457 shares during the period. Geneos Wealth Management Inc. lifted its holdings in Applied Digital by 113.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 6,667 shares of the company’s stock valued at $37,000 after buying an additional 3,542 shares in the last quarter. Strs Ohio purchased a new stake in Applied Digital in the 1st quarter valued at about $71,000. Finally, Cetera Investment Advisers boosted its position in Applied Digital by 61.0% in the 2nd quarter. Cetera Investment Advisers now owns 61,656 shares of the company’s stock valued at $621,000 after buying an additional 23,360 shares during the period. 65.67% of the stock is owned by institutional investors.

About Applied Digital

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.