Applied Digital (NASDAQ:APLD) Shares Down 8.6% – Here’s What Happened

Applied Digital Corporation (NASDAQ:APLD)’s share price was down 8.6% during mid-day trading on Tuesday . The company traded as low as $28.10 and last traded at $28.51. Approximately 17,548,882 shares traded hands during trading, a decline of 27% from the average session volume of 23,912,201 shares. The stock had previously closed at $31.18.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Morgan Stanley raised their target price on shares of Applied Digital from $36.50 to $37.50 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Compass Point restated a “buy” rating and issued a $70.00 price objective on shares of Applied Digital in a report on Friday, May 22nd. Needham & Company LLC reaffirmed a “buy” rating and issued a $83.00 price objective on shares of Applied Digital in a research note on Tuesday, July 28th. Zacks Research raised shares of Applied Digital from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. Finally, Lucid Cap Mkts raised shares of Applied Digital to a “strong-buy” rating in a report on Wednesday, May 27th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Applied Digital currently has a consensus rating of “Moderate Buy” and an average target price of $68.15.

Applied Digital Stock Performance

The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. The stock has a market cap of $8.31 billion, a P/E ratio of -32.03 and a beta of 5.75. The stock has a fifty day simple moving average of $33.83 and a 200-day simple moving average of $33.81.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.30). The company had revenue of $240.35 million for the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.Applied Digital’s quarterly revenue was up 406.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.24) earnings per share. Equities analysts expect that Applied Digital Corporation will post -1.09 earnings per share for the current fiscal year.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 75,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Several hedge funds have recently bought and sold shares of the company. Activest Wealth Management bought a new position in shares of Applied Digital during the fourth quarter worth $25,000. Ameriflex Group Inc. bought a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. McMillan Office Inc. bought a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. Larson Financial Group LLC raised its stake in Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after buying an additional 1,129 shares during the period. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in Applied Digital during the 2nd quarter worth $26,000. 65.67% of the stock is currently owned by institutional investors and hedge funds.

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.