Applied Digital (NASDAQ:APLD) Trading Down 4.6% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD) shares were down 4.6% during mid-day trading on Wednesday . The stock traded as low as $27.20 and last traded at $27.23. Approximately 13,512,125 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 22,790,334 shares. The stock had previously closed at $28.54.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. Wells Fargo & Company started coverage on Applied Digital in a research note on Thursday, September 17th. They set an “overweight” rating and a $50.00 target price for the company. Wall Street Zen downgraded shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Monday, August 3rd. Finally, Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $60.88.

Applied Digital Stock Down 4.6%

The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01. The stock’s fifty day simple moving average is $27.64 and its two-hundred day simple moving average is $32.69. The stock has a market capitalization of $7.94 billion, a P/E ratio of -30.60 and a beta of 5.72.

Applied Digital (NASDAQ:APLD) last issued 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 business had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. During the same quarter last year, the firm posted ($0.24) EPS. Applied Digital’s revenue for the quarter was up 406.3% on a year-over-year basis. As a group, research analysts expect that Applied Digital Corporation will post -1.09 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the sale, the director owned 133,378 shares of the company’s stock, valued at approximately $4,154,724.70. This represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 stock. Situational Awareness LP lifted its position in shares of Applied Digital by 18.9% in the 1st quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock worth $319,978,000 after purchasing an additional 2,139,378 shares during the period. Equitec Proprietary Markets LLC bought a new position in Applied Digital during the second quarter worth $312,349,000. Geode Capital Management LLC lifted its holdings in Applied Digital by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock valued at $154,151,000 after buying an additional 304,228 shares during the period. Hsbc Holdings PLC bought a new stake in Applied Digital during the fourth quarter valued at $29,510,000. Finally, Sei Investments Co. boosted its position in Applied Digital by 33.0% during the first quarter. Sei Investments Co. now owns 1,093,701 shares of the company’s stock valued at $25,964,000 after acquiring an additional 271,618 shares during the last quarter. 65.67% of the stock is currently owned by institutional investors.

About Applied Digital

Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure designed to support high-performance computing (HPC), artificial intelligence (AI) and other compute-intensive applications. The company provides data center capacity and related services to customers that require substantial computing power, connectivity and energy resources.

The company’s facilities are designed to support advanced computing workloads, including AI model development, cloud computing and digital asset-related applications.