Applied Digital (NASDAQ:APLD) Trading Down 2.3% – Here’s Why

Applied Digital Corporation (NASDAQ:APLD)’s share price fell 2.3% during trading on Thursday . The stock traded as low as $29.42 and last traded at $30.09. 15,132,722 shares were traded during trading, a decline of 44% from the average session volume of 27,009,322 shares. The stock had previously closed at $30.81.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on APLD. Northland Securities set a $56.00 price target on shares of Applied Digital in a report on Wednesday, January 28th. Wall Street Zen lowered shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a report on Tuesday, January 20th. Zacks Research lowered shares of Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, April 8th. Finally, Roth Mkm reissued a “buy” rating on shares of Applied Digital in a report on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Applied Digital presently has a consensus rating of “Moderate Buy” and an average price target of $42.78.

Applied Digital Stock Performance

The stock has a market capitalization of $8.60 billion, a price-to-earnings ratio of -40.66 and a beta of 7.25. 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 stock’s 50 day moving average is $28.62 and its two-hundred day moving average is $29.64.

Applied Digital (NASDAQ:APLD) last announced its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.23). The company had revenue of $108.55 million during the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.Applied Digital’s revenue for the quarter was up 139.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.08) earnings per share. Analysts expect that Applied Digital Corporation will post -0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Chuck Hastings sold 45,987 shares of the company’s stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $38.57, for a total value of $1,773,718.59. Following the completion of the transaction, the director directly owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. This represents a 10.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the completion of the transaction, the chief executive officer directly owned 4,176,329 shares of the company’s stock, valued at approximately $152,101,902.18. The trade was a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Digital

A number of large investors have recently modified their holdings of the business. Newbridge Financial Services Group Inc. boosted its stake in shares of Applied Digital by 8.6% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock worth $93,000 after buying an additional 300 shares during the last quarter. Concurrent Investment Advisors LLC boosted its stake in shares of Applied Digital by 1.5% during the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock worth $523,000 after buying an additional 318 shares during the last quarter. Brookstone Capital Management boosted its stake in shares of Applied Digital by 3.6% during the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock worth $227,000 after buying an additional 321 shares during the last quarter. ProShare Advisors LLC boosted its stake in shares of Applied Digital by 1.0% during the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock worth $841,000 after buying an additional 376 shares during the last quarter. Finally, Independent Advisor Alliance boosted its stake in shares of Applied Digital by 4.6% during the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock worth $226,000 after buying an additional 407 shares during the last quarter. 65.67% of the stock is currently 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.