Applied Digital (NASDAQ:APLD) Trading Down 2.7% – Here’s Why

Shares of Applied Digital Corporation (NASDAQ:APLD) dropped 2.7% during mid-day trading on Wednesday . The stock traded as low as $38.85 and last traded at $40.22. Approximately 30,123,107 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 42,912,059 shares. The stock had previously closed at $41.35.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Roth Mkm raised their target price on Applied Digital to $58.00 and gave the company a “buy” rating in a research report on Thursday, January 8th. Citigroup reaffirmed an “outperform” rating on shares of Applied Digital in a research note on Wednesday. HC Wainwright upped their target price on shares of Applied Digital from $20.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, October 10th. Northland Securities set a $56.00 price target on shares of Applied Digital in a research note on Wednesday. Finally, Craig Hallum increased their price objective on shares of Applied Digital to $39.00 and gave the company a “buy” rating in a report on Thursday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $34.73.

Applied Digital Trading Down 2.7%

The firm has a market cap of $11.24 billion, a price-to-earnings ratio of -74.48 and a beta of 6.89. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. The company has a 50 day moving average price of $29.40 and a 200 day moving average price of $24.18.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, January 7th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. The company had revenue of $126.59 million during the quarter, compared to analysts’ expectations of $82.22 million. During the same quarter last year, the firm posted ($0.06) earnings per share. The firm’s quarterly revenue was up 250.1% on a year-over-year basis. On average, research analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current year.

Insider Activity at Applied Digital

In related news, Director Douglas S. Miller sold 10,000 shares of the business’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $38.54, for a total value of $385,400.00. Following the sale, the director owned 200,859 shares in the company, valued at approximately $7,741,105.86. The trade was a 4.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Chuck Hastings sold 25,000 shares of the firm’s stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $34.27, for a total value of $856,750.00. Following the transaction, the director owned 426,612 shares of the company’s stock, valued at $14,619,993.24. This trade represents a 5.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 237,981 shares of company stock worth $8,596,966. Company insiders own 9.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Caprock Group LLC lifted its holdings in Applied Digital by 0.7% during the 4th quarter. Caprock Group LLC now owns 138,672 shares of the company’s stock worth $3,400,000 after buying an additional 907 shares in the last quarter. Kingswood Wealth Advisors LLC boosted its holdings in Applied Digital by 36.7% in the fourth quarter. Kingswood Wealth Advisors LLC now owns 15,100 shares of the company’s stock valued at $370,000 after purchasing an additional 4,050 shares during the period. M&T Bank Corp purchased a new stake in Applied Digital during the 4th quarter worth about $2,232,000. Checchi Capital Advisers LLC raised its position in Applied Digital by 951.1% in the 4th quarter. Checchi Capital Advisers LLC now owns 199,073 shares of the company’s stock valued at $4,881,000 after purchasing an additional 180,133 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its position in Applied Digital by 37.0% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 52,530 shares of the company’s stock valued at $1,288,000 after purchasing an additional 14,195 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.