Applied Digital (NASDAQ:APLD) Trading Down 5.4% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s stock price traded down 5.4% during trading on Tuesday . The company traded as low as $9.86 and last traded at $10.10. 6,176,113 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 7,878,003 shares. The stock had previously closed at $10.68.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on APLD shares. Craig Hallum increased their price target on Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research note on Friday, November 1st. HC Wainwright lifted their price target on shares of Applied Digital from $5.00 to $10.00 and gave the company a “buy” rating in a research report on Wednesday, October 16th. B. Riley upped their price objective on shares of Applied Digital from $8.00 to $9.00 and gave the stock a “buy” rating in a report on Friday, September 13th. Finally, Lake Street Capital lifted their target price on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Six equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, Applied Digital currently has a consensus rating of “Buy” and an average price target of $10.50.

Applied Digital Price Performance

The company’s 50-day moving average price is $7.81 and its 200-day moving average price is $5.92. 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 firm has a market cap of $2.08 billion, a price-to-earnings ratio of -8.26 and a beta of 4.65.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping 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 company had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same period in the prior year, the business earned ($0.10) EPS. The firm’s quarterly revenue was up 67.2% on a year-over-year basis. On average, equities research analysts forecast that Applied Digital Co. will post -0.4 EPS for the current year.

Insider Activity

In related news, Director Richard N. Nottenburg sold 19,369 shares of the company’s stock in a transaction that occurred 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 directly owns 384,317 shares in the company, valued at approximately $2,886,220.67. This represents a 4.80 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $5.50, for a total transaction of $55,000.00. Following the completion of the sale, the director now directly owns 218,506 shares in the company, valued at approximately $1,201,783. This trade represents a 4.38 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 119,369 shares of company stock worth $870,161. Corporate insiders own 11.81% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in APLD. Headlands Technologies LLC raised its holdings 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 valued at $52,000 after purchasing an additional 6,933 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in Applied Digital in the third quarter valued at $59,000. ARS Investment Partners LLC purchased a new position in Applied Digital in the second quarter valued at $60,000. Beacon Harbor Wealth Advisors Inc. acquired a new stake in Applied Digital in the third quarter valued at $83,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in Applied Digital during the 3rd quarter worth about $88,000. Institutional investors and hedge funds own 65.67% of the company’s stock.

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.