Applied Digital (NASDAQ:APLD) Shares Down 1.1% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD)’s stock price dropped 1.1% on Tuesday . The stock traded as low as $9.21 and last traded at $9.68. Approximately 6,305,239 shares changed hands during trading, a decline of 55% from the average daily volume of 13,864,221 shares. The stock had previously closed at $9.79.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Cantor Fitzgerald assumed coverage on shares of Applied Digital in a research report on Friday, December 20th. They issued an “overweight” rating and a $15.00 price target for the company. Craig Hallum upped their target price on shares of Applied Digital from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Lake Street Capital increased their price target on Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. B. Riley boosted their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research report on Friday, September 13th. Finally, Roth Mkm reiterated a “buy” rating and set a $10.00 target price on shares of Applied Digital in a research report on Thursday, October 10th. Seven equities research analysts have rated the stock with a buy rating, According to MarketBeat.com, Applied Digital has an average rating of “Buy” and an average target price of $11.14.

Applied Digital Trading Down 7.6 %

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The stock has a 50-day moving average price of $8.58 and a two-hundred day moving average price of $6.87. The stock has a market cap of $1.84 billion, a PE ratio of -7.44 and a beta of 4.78.

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

Insider Activity

In related news, Director Richard N. Nottenburg sold 50,000 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $460,000.00. Following the completion of the sale, the director now directly owns 334,317 shares in the company, valued at $3,075,716.40. This trade represents a 13.01 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total transaction of $1,840,000.00. Following the transaction, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 359,369 shares of company stock worth $3,115,161. 11.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Digital

Institutional investors have recently made changes to their positions in the company. Charles Schwab Investment Management Inc. raised its position in Applied Digital by 36.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 899,293 shares of the company’s stock worth $7,419,000 after purchasing an additional 240,554 shares during the period. Quadrature Capital Ltd bought a new position in shares of Applied Digital during the third quarter valued at approximately $545,000. Barclays PLC raised its holdings in shares of Applied Digital by 736.8% in the third quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after buying an additional 428,428 shares during the period. Virtu Financial LLC bought a new stake in shares of Applied Digital during the 3rd quarter worth approximately $2,030,000. Finally, B. Riley Wealth Advisors Inc. lifted its stake in shares of Applied Digital by 66.1% during the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 774,655 shares of the company’s stock worth $4,609,000 after acquiring an additional 308,223 shares during 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.