Applied Digital (NASDAQ:APLD) Shares Down 5.4% After Insider Selling

Applied Digital Co. (NASDAQ:APLD) shares fell 5.4% on Wednesday following insider selling activity. The company traded as low as $7.18 and last traded at $7.18. 3,400,885 shares were traded during mid-day trading, a decline of 53% from the average session volume of 7,309,523 shares. The stock had previously closed at $7.59.

Specifically, Director Richard N. Nottenburg sold 19,369 shares of the business’s stock in a transaction on Thursday, November 7th. The shares were sold at an average price of $7.51, for a total transaction of $145,461.19. Following the sale, the director now owns 384,317 shares of the company’s stock, valued at $2,886,220.67. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Lake Street Capital lifted their target price on Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. HC Wainwright boosted their price target on shares of Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research note on Wednesday, October 16th. Roth Mkm reaffirmed a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. Craig Hallum raised their price objective on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Applied Digital in a research note on Friday, November 1st. Six analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $10.50.

Applied Digital Stock Performance

The business’s fifty day simple moving average is $7.04 and its 200-day simple moving average is $5.47. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 9th. The company reported ($0.15) EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The business had revenue of $60.70 million during the quarter, compared to analyst estimates of $54.85 million. During the same quarter in the prior year, the company posted ($0.10) EPS. Applied Digital’s quarterly revenue was up 67.2% compared to the same quarter last year. Research analysts expect that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Applied Digital

Several institutional investors and hedge funds have recently modified their holdings of APLD. Headlands Technologies LLC raised its position in shares of Applied Digital by 381.8% in the 2nd quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after acquiring an additional 6,933 shares in the last quarter. ARS Investment Partners LLC purchased a new stake in Applied Digital in the second quarter worth $60,000. Beacon Harbor Wealth Advisors Inc. bought a new position in Applied Digital in the third quarter worth $83,000. Wealth Enhancement Advisory Services LLC purchased a new position in Applied Digital during the third quarter valued at $88,000. Finally, Chesapeake Capital Corp IL bought a new position in shares of Applied Digital during the third quarter valued at approximately $94,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.