Applied Digital (NASDAQ:APLD) Shares Down 10.3% – What’s Next?

Shares of Applied Digital Corporation (NASDAQ:APLD) traded down 10.3% on Friday . The company traded as low as $37.69 and last traded at $39.62. 21,698,261 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 25,766,396 shares. The stock had previously closed at $44.15.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Citizens Jmp raised their price target on Applied Digital from $40.00 to $60.00 and gave the company a “market outperform” rating in a research report on Thursday, May 21st. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Needham & Company LLC raised their price target on Applied Digital from $51.00 to $66.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Zacks Research upgraded Applied Digital from a “strong sell” rating to a “hold” rating in a research report on Thursday, May 7th. Finally, Citigroup restated an “outperform” rating on shares of Applied Digital in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $59.11.

Applied Digital Stock Down 10.3%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. The company has a market cap of $11.32 billion, a PE ratio of -53.54 and a beta of 5.69. The firm has a fifty day simple moving average of $36.19 and a 200 day simple moving average of $32.06.

Applied Digital (NASDAQ:APLD) last posted its quarterly earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The business had revenue of $108.55 million during the quarter, compared to analysts’ expectations of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm’s quarterly revenue was up 139.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.08) EPS. Equities research analysts predict that Applied Digital Corporation will post -0.68 EPS for the current year.

Insider Activity

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

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently modified their holdings of the company. Parallel Advisors LLC lifted its stake in shares of Applied Digital by 126.1% in the 1st quarter. Parallel Advisors LLC now owns 2,614 shares of the company’s stock valued at $62,000 after purchasing an additional 1,458 shares in the last quarter. Vestor Capital LLC acquired a new position in shares of Applied Digital in the 1st quarter valued at about $98,000. Western Wealth Management LLC acquired a new position in shares of Applied Digital in the 1st quarter valued at about $87,000. Janus Henderson Group PLC lifted its stake in shares of Applied Digital by 318.5% in the 1st quarter. Janus Henderson Group PLC now owns 785,152 shares of the company’s stock valued at $18,638,000 after purchasing an additional 597,548 shares in the last quarter. Finally, Amundi lifted its stake in shares of Applied Digital by 61.8% in the 1st quarter. Amundi now owns 31,327 shares of the company’s stock valued at $744,000 after purchasing an additional 11,968 shares in 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.