Applied Digital (NASDAQ:APLD) Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Applied Digital (NASDAQ:APLD) from a hold rating to a sell rating in a report published on Sunday.

A number of other research analysts have also commented on the stock. Needham & Company LLC lifted their price objective on shares of Applied Digital from $12.00 to $16.00 and gave the company a “buy” rating in a research note on Thursday, July 31st. Craig Hallum lifted their price objective on shares of Applied Digital from $12.00 to $23.00 and gave the company a “buy” rating in a research note on Monday, August 18th. Lake Street Capital lifted their price objective on shares of Applied Digital from $18.00 to $37.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Compass Point initiated coverage on shares of Applied Digital in a research note on Monday, September 15th. They issued a “buy” rating on the stock. Finally, Northland Securities lifted their price objective on shares of Applied Digital to $40.00 and gave the company an “outperform” rating in a research note on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $22.10.

Applied Digital Price Performance

Shares of NASDAQ:APLD opened at $32.54 on Friday. The company’s fifty day moving average price is $21.83 and its 200 day moving average price is $13.27. Applied Digital has a 12 month low of $3.31 and a 12 month high of $40.20. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.65 and a quick ratio of 0.65. The firm has a market capitalization of $9.10 billion, a P/E ratio of -28.80 and a beta of 6.77.

Applied Digital (NASDAQ:APLD) last announced its quarterly earnings results on Thursday, October 9th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.08. Applied Digital had a negative net margin of 111.29% and a negative return on equity of 37.14%. The firm had revenue of $38.01 million for the quarter, compared to analyst estimates of $52.25 million. During the same period last year, the business earned ($0.15) EPS. Applied Digital’s revenue for the quarter was up 84.3% compared to the same quarter last year. As a group, sell-side analysts predict that Applied Digital will post -0.96 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Richard N. Nottenburg sold 20,000 shares of Applied Digital stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total value of $305,200.00. Following the sale, the director owned 297,987 shares of the company’s stock, valued at $4,547,281.62. The trade was a 6.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mohammad Saidal Lavanw Mohmand sold 75,000 shares of Applied Digital stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $15.26, for a total transaction of $1,144,500.00. Following the completion of the sale, the chief financial officer directly owned 201,800 shares in the company, valued at approximately $3,079,468. The trade was a 27.10% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 506,250 shares of company stock valued at $7,713,675 over the last quarter. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of Applied Digital

A number of institutional investors have recently added to or reduced their stakes in the stock. Fifth Third Wealth Advisors LLC purchased a new stake in Applied Digital during the third quarter worth about $564,000. McGuire Investment Group LLC purchased a new stake in Applied Digital during the third quarter worth about $522,000. SJS Investment Consulting Inc. purchased a new stake in Applied Digital during the third quarter worth about $111,000. Mayfair Advisory Group LLC purchased a new stake in Applied Digital during the third quarter worth about $213,000. Finally, Ethic Inc. purchased a new stake in Applied Digital during the third quarter worth about $226,000. Hedge funds and other institutional investors 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.