Applied Digital (NASDAQ:APLD) Stock Price Down 9.2% - Here's What Happened

Applied Digital Co. (NASDAQ:APLD) experienced a significant decrease in its stock price, dropping by 9.2% during trading on Monday. The stock touched a low of $6.53 before eventually trading at $6.59. During this period, about 6,398,956 shares changed hands, a marked decline of 77% from the average daily trading volume, which stands at 27,996,920 shares. Prior to this drop, Applied Digital's shares closed at $7.26.

Wall Street Analysts Forecast Growth

Recent reports from various equities research analysts have suggested potential growth for Applied Digital. HC Wainwright upgraded their price target from $10.00 to $12.00, maintaining a "buy" rating, on January 15th. Similarly, Northland Securities raised their target from $12.00 to $20.00, awarding the stock an "outperform" rating on February 4th. In contrast, Cantor Fitzgerald reduced their price target from $15.00 to $14.00 while still designating the stock as "overweight". Compass Point began coverage on the shares on January 28th, issuing a "buy" rating with a target price of $10.00. Moreover, Needham & Company LLC reiterated a "buy" rating and set an $11.00 target on February 24th. Currently, nine research analysts have recommended buying the stock, and gathered data indicates a consensus rating of "Buy" with a target price of $12.11.

Applied Digital Stock Performance

Applied Digital has a market capitalization of $1.39 billion, with a price-to-earnings (P/E) ratio of -3.61 and a beta of 4.69. The company has a debt-to-equity ratio of 1.22 and both its quick ratio and current ratio stand at 0.77. The stock's 50-day simple moving average is approximately $8.26, while the 200-day average is $7.78. In its quarterly earnings report released on January 14th, Applied Digital reported a loss of ($0.06) per share, which was better than the consensus estimate of ($0.14) by $0.08. The firm achieved revenue of $63.87 million, surpassing expectations of $62.41 million, and demonstrating a 51.3% year-over-year revenue growth.

Insider Activity at Applied Digital

In related news, Director Richard N. Nottenburg sold 20,000 shares on January 17th for an average price of $8.85, totaling $177,000. Following this sale, Nottenburg owns 342,923 shares, valued at approximately $3,034,868.55, reflecting a 5.51% decrease in his stock ownership. This transaction was documented in a filing with the Securities and Exchange Commission. Currently, insiders hold around 11.81% of the company's stocks.

Institutional Investors Weigh In On Applied Digital

Several hedge funds and institutional investors have recently adjusted their holdings of Applied Digital. Wilmington Savings Fund Society FSB doubled its stake in the fourth quarter, acquiring 4,000 shares valued at $31,000 after adding 2,000 shares. R Squared Ltd bought a new position in Applied Digital worth approximately $36,000, while US Bancorp DE and Jones Financial Companies Lllp made similar moves worth $37,000 and $39,000, respectively. Spire Wealth Management also acquired a new position valued at about $43,000. Overall, institutional investors and hedge funds own around 65.67% of the stock.

Applied Digital Company Profile

Applied Digital Corporation focuses on designing, developing, and operating datacenters across North America. The company provides digital infrastructure solutions for high-performance computing, as well as AI cloud services and crypto datacenter hosting.

Should You Invest $1,000 in Applied Digital Right Now?

Before considering an investment in Applied Digital, investors should do thorough research. While the stock currently holds a "Buy" rating from analysts, top-rated experts have identified five other stocks that they believe are better investment opportunities at this time.

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