Applied Digital (NASDAQ:APLD) Stock Price Down 7.6% – Should You Sell?

Applied Digital Co. (NASDAQ:APLD) was down 7.6% during mid-day trading on Thursday . The stock traded as low as $8.32 and last traded at $8.70. Approximately 14,142,000 shares traded hands during trading, a decline of 11% from the average daily volume of 15,866,307 shares. The stock had previously closed at $9.42.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on APLD shares. Roth Mkm reissued a “buy” rating and set a $10.00 price objective on shares of Applied Digital in a research note on Thursday, October 10th. B. Riley boosted their price objective on shares of Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Cantor Fitzgerald started coverage on shares of Applied Digital in a research note on Friday, December 20th. They set an “overweight” rating and a $15.00 price objective for the company. Lake Street Capital boosted their price objective on shares of Applied Digital from $7.00 to $11.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price objective on shares of Applied Digital in a research note on Friday, November 1st. Seven equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $11.14.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a market cap of $1.75 billion, a price-to-earnings ratio of -7.09 and a beta of 4.78. The business’s fifty day simple moving average is $8.66 and its 200 day simple moving average is $6.90.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 9th. The company reported ($0.15) 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 firm had revenue of $60.70 million for the quarter, compared to analyst estimates of $54.85 million. During the same quarter in the previous year, the business posted ($0.10) EPS. The firm’s revenue was up 67.2% compared to the same quarter last year. Research analysts predict that Applied Digital Co. will post -0.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Wes Cummins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total value of $1,840,000.00. Following the sale, the chief executive officer now owns 3,875,955 shares in the company, valued at approximately $35,658,786. This represents a 4.91 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 50,000 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $9.20, for a total transaction of $460,000.00. Following the completion of the sale, the director now owns 334,317 shares in the company, valued at approximately $3,075,716.40. This trade represents a 13.01 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 359,369 shares of company stock worth $3,115,161 in the last quarter. 11.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently modified their holdings of APLD. JPMorgan Chase & Co. grew its position in Applied Digital by 18.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 56,355 shares of the company’s stock worth $465,000 after purchasing an additional 8,774 shares during the last quarter. Tidal Investments LLC bought a new position in Applied Digital in the 3rd quarter worth about $95,000. Virtu Financial LLC bought a new position in Applied Digital in the 3rd quarter worth about $2,030,000. Geode Capital Management LLC grew its position in Applied Digital by 48.7% in the 3rd quarter. Geode Capital Management LLC now owns 3,061,160 shares of the company’s stock worth $25,258,000 after purchasing an additional 1,002,862 shares during the last quarter. Finally, Barclays PLC grew its position in Applied Digital by 736.8% in the 3rd quarter. Barclays PLC now owns 486,577 shares of the company’s stock worth $4,014,000 after purchasing an additional 428,428 shares during the last quarter. Institutional investors own 65.67% of the company’s stock.

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.