Applied Digital (NASDAQ:APLD) Trading Down 6.9% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 6.9% on Thursday . The stock traded as low as $31.72 and last traded at $33.06. 24,532,539 shares were traded during mid-day trading, a decline of 3% from the average session volume of 25,203,609 shares. The stock had previously closed at $35.52.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Digital in a research note on Friday, April 24th. Zacks Research cut shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research note on Monday, June 8th. Citizens Jmp raised their price target on shares of Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Thursday, May 21st. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Applied Digital in a report on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, Applied Digital presently has an average rating of “Moderate Buy” and an average price target of $70.56.

Applied Digital Price Performance

The stock has a market capitalization of $9.45 billion, a P/E ratio of -44.68 and a beta of 5.67. 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 company has a fifty day simple moving average of $41.82 and a two-hundred day simple moving average of $34.07.

Applied Digital (NASDAQ:APLD) last released its 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). Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The business had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. During the same quarter in the previous year, the company posted ($0.08) earnings per share. The business’s revenue for the quarter was up 139.3% on a year-over-year basis. Sell-side analysts expect that Applied Digital Corporation will post -0.7 EPS for the current fiscal year.

Insider Activity at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction on Monday, April 27th. The shares were sold at an average price of $34.98, for a total transaction of $349,800.00. Following the completion of the sale, the director owned 184,859 shares in the company, valued at approximately $6,466,367.82. The trade was a 5.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the completion of the transaction, the director directly owned 208,378 shares in the company, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,000 shares of company stock worth $1,182,175 over the last 90 days. 9.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in Applied Digital by 36.4% in the fourth quarter. Vanguard Group Inc. now owns 24,168,082 shares of the company’s stock valued at $592,601,000 after buying an additional 6,445,908 shares during the period. Situational Awareness LP boosted its holdings in Applied Digital by 18.9% during the first quarter. Situational Awareness LP now owns 13,478,438 shares of the company’s stock worth $319,978,000 after buying an additional 2,139,378 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Applied Digital by 5.1% during the 4th quarter. Geode Capital Management LLC now owns 6,285,820 shares of the company’s stock worth $154,151,000 after buying an additional 304,228 shares during the period. Value Aligned Research Advisors LLC acquired a new position in shares of Applied Digital during the 4th quarter worth about $138,380,000. Finally, BNP Paribas Financial Markets increased its stake in shares of Applied Digital by 24,356.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,219,565 shares of the company’s stock valued at $52,561,000 after acquiring an additional 5,198,223 shares during the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

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.