Applied Digital (NASDAQ:APLD) Trading Down 6.5% – Here’s Why
by Sarita Garza · The Markets DailyApplied Digital Corporation (NASDAQ:APLD – Get Free Report)’s stock price was down 6.5% during trading on Friday . The stock traded as low as $23.96 and last traded at $24.05. Approximately 15,263,441 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 34,838,047 shares. The stock had previously closed at $25.72.
Wall Street Analysts Forecast Growth
Several brokerages have recently issued reports on APLD. B. Riley reissued a “buy” rating on shares of Applied Digital in a report on Wednesday, October 22nd. Citigroup reissued an “outperform” rating on shares of Applied Digital in a research note on Thursday, October 9th. Northland Securities raised their price target on Applied Digital to $40.00 and gave the stock an “outperform” rating in a research report on Friday, October 10th. HC Wainwright boosted their price objective on Applied Digital from $20.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 10th. Finally, Compass Point assumed coverage on Applied Digital in a research note on Monday, September 15th. They set a “buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $26.20.
View Our Latest Report on Applied Digital
Applied Digital Stock Down 6.5%
The firm’s 50-day simple moving average is $28.57 and its 200 day simple moving average is $20.46. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a market capitalization of $6.72 billion, a P/E ratio of -21.28 and a beta of 6.94.
Applied Digital (NASDAQ:APLD – Get Free Report) last released its earnings results on Thursday, October 9th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.08. The business had revenue of $64.22 million for the quarter, compared to analyst estimates of $52.25 million. Applied Digital had a negative return on equity of 37.14% and a negative net margin of 111.29%.Applied Digital’s revenue was up 84.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.15) earnings per share. As a group, research analysts expect that Applied Digital Corporation will post -0.96 EPS for the current year.
Insider Buying and Selling at Applied Digital
In other news, Director Ella G. Benson sold 42,569 shares of the business’s stock in a transaction dated Wednesday, October 29th. The shares were sold at an average price of $35.30, for a total transaction of $1,502,685.70. Following the transaction, the director directly owned 69,256 shares in the company, valued at $2,444,736.80. The trade was a 38.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mohammad Saidal Lavanw Mohmand sold 100,000 shares of the firm’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $34.08, for a total transaction of $3,408,000.00. Following the completion of the sale, the chief financial officer owned 158,912 shares of the company’s stock, valued at $5,415,720.96. This trade represents a 38.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 328,035 shares of company stock valued at $11,376,479 in the last 90 days. Company insiders own 9.50% of the company’s stock.
Institutional Trading of Applied Digital
A number of hedge funds have recently made changes to their positions in APLD. Invesco Ltd. increased its holdings in shares of Applied Digital by 76.1% during the 1st quarter. Invesco Ltd. now owns 192,789 shares of the company’s stock worth $1,083,000 after acquiring an additional 83,333 shares during the last quarter. Nuveen LLC acquired a new position in shares of Applied Digital in the first quarter valued at $2,481,000. Russell Investments Group Ltd. raised its position in shares of Applied Digital by 29.3% in the first quarter. Russell Investments Group Ltd. now owns 122,570 shares of the company’s stock valued at $689,000 after purchasing an additional 27,782 shares during the period. Wellington Management Group LLP lifted its stake in shares of Applied Digital by 11.7% during the 1st quarter. Wellington Management Group LLP now owns 19,056 shares of the company’s stock worth $107,000 after buying an additional 2,001 shares during the last quarter. Finally, AlphaQuest LLC boosted its holdings in shares of Applied Digital by 9.4% during the 1st quarter. AlphaQuest LLC now owns 68,206 shares of the company’s stock worth $383,000 after buying an additional 5,841 shares during the period. 65.67% of the stock is 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.