Applied Digital (NASDAQ:APLD) Shares Gap Down – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s share price gapped down before the market opened on Monday . The stock had previously closed at $7.12, but opened at $6.55. Applied Digital shares last traded at $6.88, with a volume of 6,283,947 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on APLD shares. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Wednesday, January 15th. Craig Hallum raised their target price on Applied Digital from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, October 10th. Compass Point initiated coverage on Applied Digital in a research report on Tuesday, January 28th. They set a “buy” rating and a $10.00 target price for the company. Roth Mkm reiterated a “buy” rating and set a $10.00 price target on shares of Applied Digital in a research note on Thursday, October 10th. Finally, Cantor Fitzgerald cut their price target on Applied Digital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Wednesday, January 15th. Eight investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, Applied Digital presently has a consensus rating of “Buy” and an average target price of $11.13.

Applied Digital Trading Up 3.4 %

The firm has a 50 day simple moving average of $8.80 and a 200 day simple moving average of $7.10. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market cap of $1.64 billion, a P/E ratio of -4.25 and a beta of 4.78.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Tuesday, January 14th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.08. The business had revenue of $63.87 million during the quarter, compared to the consensus estimate of $62.41 million. Applied Digital had a negative return on equity of 117.67% and a negative net margin of 127.86%. The firm’s revenue was up 51.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.05) EPS. On average, equities research analysts predict that Applied Digital Co. will post -0.96 EPS for the current fiscal year.

Insider Activity

In related news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the completion of the sale, the chief executive officer now directly owns 3,875,955 shares in the company, valued at $35,658,786. This represents a 4.91 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Richard N. Nottenburg sold 20,000 shares of the company’s stock in a transaction on Friday, January 17th. The stock was sold at an average price of $8.85, for a total transaction of $177,000.00. Following the completion of the transaction, the director now owns 342,923 shares of the company’s stock, valued at $3,034,868.55. This trade represents a 5.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 289,369 shares of company stock worth $2,622,461 in the last three months. Corporate insiders own 11.81% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Institutional investors and hedge funds have recently made changes to their positions in the business. Wolverine Asset Management LLC purchased a new position in shares of Applied Digital in the 4th quarter worth about $3,056,000. Private Advisor Group LLC lifted its stake in shares of Applied Digital by 50.0% in the fourth quarter. Private Advisor Group LLC now owns 58,055 shares of the company’s stock worth $444,000 after buying an additional 19,355 shares in the last quarter. New York State Common Retirement Fund increased its position in shares of Applied Digital by 75.0% during the fourth quarter. New York State Common Retirement Fund now owns 40,819 shares of the company’s stock valued at $312,000 after acquiring an additional 17,500 shares in the last quarter. Atria Wealth Solutions Inc. purchased a new position in Applied Digital in the 4th quarter worth approximately $149,000. Finally, Principal Financial Group Inc. lifted its position in Applied Digital by 44.2% in the 4th quarter. Principal Financial Group Inc. now owns 14,542 shares of the company’s stock valued at $111,000 after acquiring an additional 4,459 shares in the last quarter. 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.