Applied Digital (NASDAQ:APLD) Trading Down 4.9% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) was down 4.9% during mid-day trading on Friday . The company traded as low as $8.01 and last traded at $8.28. Approximately 5,409,452 shares were traded during trading, a decline of 62% from the average daily volume of 14,062,823 shares. The stock had previously closed at $8.71.

Analyst Ratings Changes

Several research analysts have weighed in on APLD shares. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Applied Digital in a report on Friday, November 1st. Craig Hallum upped their target price on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Cantor Fitzgerald began coverage on Applied Digital in a research report on Friday, December 20th. They set an “overweight” rating and a $15.00 target price on the stock. B. Riley lifted their price target on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a report on Friday, September 13th. Finally, Roth Mkm reiterated a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a report on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital currently has an average rating of “Buy” and an average target price of $11.14.

Applied Digital Price Performance

The stock has a market cap of $1.75 billion, a PE ratio of -7.07 and a beta of 4.78. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The company’s fifty day moving average is $8.62 and its 200 day moving average is $6.89.

Applied Digital (NASDAQ:APLD) last issued its 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 net margin of 74.95% and a negative return on equity of 88.87%. The business had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. During the same quarter last year, the firm posted ($0.10) EPS. The business’s revenue for the quarter was up 67.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Applied Digital Co. will post -0.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of Applied Digital stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $8.01, for a total transaction of $80,100.00. Following the sale, the director now owns 208,506 shares in the company, valued at $1,670,133.06. This trade represents a 4.58 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of the company’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $7.37, for a total transaction of $589,600.00. Following the completion of the transaction, the director now owns 433,686 shares of the company’s stock, valued at $3,196,265.82. This trade represents a 15.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 359,369 shares of company stock valued at $3,115,161 over the last three months. 11.81% of the stock is owned by company insiders.

Institutional Trading of Applied Digital

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Wellington Management Group LLP grew its stake in Applied Digital by 8.8% during the 3rd quarter. Wellington Management Group LLP now owns 37,411 shares of the company’s stock valued at $309,000 after purchasing an additional 3,040 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Applied Digital by 14.4% in the third quarter. The Manufacturers Life Insurance Company now owns 43,064 shares of the company’s stock worth $355,000 after buying an additional 5,423 shares during the last quarter. FMR LLC increased its stake in shares of Applied Digital by 99.1% in the third quarter. FMR LLC now owns 13,071 shares of the company’s stock worth $108,000 after buying an additional 6,507 shares during the last quarter. ICA Group Wealth Management LLC raised its stake in shares of Applied Digital by 56.8% in the 2nd quarter. ICA Group Wealth Management LLC now owns 18,750 shares of the company’s stock valued at $112,000 after purchasing an additional 6,795 shares in the last quarter. Finally, Headlands Technologies LLC raised its stake in Applied Digital by 381.8% during the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock valued at $52,000 after buying an additional 6,933 shares in the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

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.